Rule2022-04300
Implementation of Sanctions Against Russia Under the Export Administration Regulations (EAR)
Primary source
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Published
March 3, 2022
Effective
February 24, 2022
Issuing agencies
Commerce DepartmentIndustry and Security Bureau
Abstract
In response to the Russian Federation's (Russia's) further invasion of Ukraine, with this final rule, the Department of Commerce is adding new Russia license requirements and licensing policies to the Export Administration Regulations (EAR) to protect U.S. national security and foreign policy interests. These new Russia measures: Impose new Commerce Control List (CCL)-based license requirements for Russia; add two new foreign "direct product" rules (FDP rules) specific to Russia and Russian `military end users;' specify a license review policy of denial applicable to all of the license requirements being added in this rule, with certain limited exceptions; significantly restrict the use of EAR license exceptions; expand the existing Russia `military end use' and `military end user' control scope to all items "subject to the EAR" other than food and medicine designated EAR99, or ECCN 5A992.c and 5D992.c unless for Russian "government end users" and Russian state-owned enterprises (SoEs); transfer forty-five Russian entities from the Military End-User (MEU) List to the Entity List with an expanded license requirement of all items subject to the EAR (including foreign-produced items subject to the Russia-MEU FDP rules); and add two new Russia entities and revise two Russia entities to the Entity List. Lastly, this rule imposes comprehensive export, reexport and transfer (in-country) restrictions for the so-called Donetsk People's Republic (DNR) and Luhansk People's Republics (LNR) regions of Ukraine ("Covered Regions of Ukraine") and makes conforming revisions to export, reexport transfer (in-country) restrictions for Crimea Region of Ukraine provisions.
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[Federal Register Volume 87, Number 42 (Thursday, March 3, 2022)]
[Rules and Regulations]
[Pages 12226-12251]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-04300]
[[Page 12225]]
Vol. 87
Thursday,
No. 42
March 3, 2022
Part II
Department of Commerce
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Bureau of Industry and Security
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15 CFR Parts 734, 738, 740, et al.
Implementation of Sanctions Against Russia Under the Export
Administration Regulations (EAR); Final Rule
Federal Register / Vol. 87 , No. 42 / Thursday, March 3, 2022 / Rules
and Regulations
[[Page 12226]]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 734, 738, 740, 742, 744, 746, and 772
[Docket No. 220215-0048]
RIN 0694-AI71
Implementation of Sanctions Against Russia Under the Export
Administration Regulations (EAR)
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Final rule.
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SUMMARY: In response to the Russian Federation's (Russia's) further
invasion of Ukraine, with this final rule, the Department of Commerce
is adding new Russia license requirements and licensing policies to the
Export Administration Regulations (EAR) to protect U.S. national
security and foreign policy interests. These new Russia measures:
Impose new Commerce Control List (CCL)-based license requirements for
Russia; add two new foreign ``direct product'' rules (FDP rules)
specific to Russia and Russian `military end users;' specify a license
review policy of denial applicable to all of the license requirements
being added in this rule, with certain limited exceptions;
significantly restrict the use of EAR license exceptions; expand the
existing Russia `military end use' and `military end user' control
scope to all items ``subject to the EAR'' other than food and medicine
designated EAR99, or ECCN 5A992.c and 5D992.c unless for Russian
``government end users'' and Russian state-owned enterprises (SoEs);
transfer forty-five Russian entities from the Military End-User (MEU)
List to the Entity List with an expanded license requirement of all
items subject to the EAR (including foreign-produced items subject to
the Russia-MEU FDP rules); and add two new Russia entities and revise
two Russia entities to the Entity List. Lastly, this rule imposes
comprehensive export, reexport and transfer (in-country) restrictions
for the so-called Donetsk People's Republic (DNR) and Luhansk People's
Republics (LNR) regions of Ukraine (``Covered Regions of Ukraine'') and
makes conforming revisions to export, reexport transfer (in-country)
restrictions for Crimea Region of Ukraine provisions.
DATES: This rule is effective February 24, 2022.
FOR FURTHER INFORMATION CONTACT: For questions on the Entity List and
MEU List, contact the Chair, End-User Review Committee, Office of the
Assistant Secretary, Export Administration, Bureau of Industry and
Security, Department of Commerce, Phone: (202) 482-5991, Fax: (202)
482-3911, Email: <a href="/cdn-cgi/l/email-protection#9dd8cfdeddfff4eeb3f9f2feb3faf2eb"><span class="__cf_email__" data-cfemail="6a2f38292a080319440e0509440d051c">[email protected]</span></a>.
For other questions on this final rule, contact Eileen Albanese,
Director, Office of National Security and Technology Transfer Controls,
Bureau of Industry and Security, Department of Commerce, Phone: (202)
482-0092, Fax: (202) 482-3355, Email: <a href="/cdn-cgi/l/email-protection#0d7f7d693f4d6f647e2369626e236a627b"><span class="__cf_email__" data-cfemail="84f6f4e0b6c4e6edf7aae0ebe7aae3ebf2">[email protected]</span></a>. For emails,
include ``Russia'' in the subject line.
SUPPLEMENTARY INFORMATION:
I. Background
In response to the Russian Federation's (Russia's) further invasion
of Ukraine, the Bureau of Industry and Security (BIS) imposes extensive
sanctions on Russia by amending the Export Administration Regulations
(15 CFR parts 730-774) (EAR). Russia's invasion of Ukraine flagrantly
violates international law, is contrary to U.S. national security and
foreign policy interests, and undermines global order, peace, and
security, and therefore necessitates these stringent and expansive
sanctions. The Commerce Department's sanctions are one aspect of the
broad U.S. Government response to Russia's unprovoked aggression and
are being imposed in coordination with allies and partners.
In response to Russia's 2014 invasion of Ukraine and occupation of
the Crimean region, the U.S. Government, in coordination with its
partners and allies, imposed restrictions on Russia, including asset-
blocking measures, licensing requirements applicable to exports,
reexports, and transfers (in-country) of items subject to the EAR
destined for certain Russian entities, and special controls on items
subject to the EAR intended for use in specified Russian industry
sectors. Leading up to Russia's further invasion of Ukraine, the U.S.
Government announced that should Russia encroach further on Ukraine's
territory, it would impose additional, comprehensive sanctions with
significant consequences.
The export control measures implemented in this final rule protect
U.S. national security and foreign policy interests by restricting
Russia's access to items that it needs to project power and fulfill its
strategic ambitions. These items include sophisticated technologies
designed and produced in the United States, as well as certain foreign-
produced items that contain or are based on U.S.-origin technology
subject to the EAR or other technology that is subject to the EAR that
are essential inputs to Russia's key technology and other sectors. BIS
is primarily targeting the Russian defense, aerospace, and maritime
sectors with these new export controls. These export controls include
controls on the export from abroad of certain foreign-produced items
that are subject to the EAR. Given the global dominance of U.S.-origin
software, technology, and equipment (including tooling), these new
controls, implemented in parallel with similarly stringent measures by
partner and allied countries, will cover a broad scope of items that
Russia seeks to advance its strategic ambitions and consequently impair
the country's key industrial sectors.
II. Overview of New Controls
BIS is implementing a new license requirement for Russia on items
subject to the EAR and classified under any Export Control
Classification Number (ECCN) in Categories 3 through 9 of the Commerce
Control List, Supp. No. 1 to part 774 of the EAR (CCL). The new license
requirement is added under new Sec. 746.8(a)(1) (Russia sanctions) in
part 746 of the EAR (Embargoes and Other Special Controls). License
exceptions described in Sec. 746.8(c)(1)-(7) may be used to overcome
the license requirement. When a license application is required,
applications for such items will be subject to a policy of denial.
However, to minimize unintended consequences, a case-by-case review
policy applies to applications to export, reexport, or transfer (in-
country) items that ensure safety of flight, maritime safety, meet
humanitarian needs, enable government space cooperation, and allow
transactions for items destined to specified Western subsidiaries and
joint ventures, support civil telecommunications infrastructure in
certain countries, and government-to-government activities. The case-
by-case review policy will be used to determine whether a transaction
that meets the criteria above would benefit the Russian government or
defense sector. Additionally, BIS is establishing two new foreign
``direct product'' rules (FDP rules) in Sec. 734.9 of the EAR. The
first relates to the entire country of Russia, as described in new
Sec. 734.9(f) (the ``Russia FDP rule''). Foreign-produced items
subject to the EAR under the Russia FDP rule will be subject to the
license requirement described in new Sec. 746.8(a)(2) but will be
eligible for certain license exceptions described in Sec. 746.8(c)(1)-
(7). When a license application is required, such applications will be
subject to a general policy of denial but will be subject to case-by-
case review for certain
[[Page 12227]]
circumstances described further in Sec. 746.8(b).
The second new FDP rule targets Russian `military end users,' as
described in new Sec. 734.9(g) (the ``Russia-MEU FDP rule''). Foreign-
produced items subject to the EAR under the Russia-MEU FDP rule will be
subject to the license requirement described in new Sec. 746.8(a)(3).
No license exceptions are available to overcome this license
requirement, except as specified in the Entity List entry for a
Footnote 3 entity on the Entity List in supplement no. 4 to part 744 of
the EAR, and such items will be subject to a policy of denial for all
license applications, as described in Sec. 746.8(b).
BIS has determined that certain countries are committed to
implementing substantially similar export controls as part of their
domestic sanctions against Russia. These countries are identified in
Supplement No. 3 to part 746 (Russia Exclusions List). They are
excluded from the requirements of the Russia and Russia-MEU FDP rules
and the de minimis provisions under Supplement No. 2 to part 734 with
respect to ECCNs that either specify only Anti-terrorism (AT) in the
reason for controls paragraph of the ECCN or are classified under ECCN
9A991. This exclusion may be full or partial, as noted in the Scope
column of the Russia Exclusions List and may only apply when the
criteria specified in Sec. 746.8(a)(4) or (5) are met. In addition,
the Russia Exclusions List includes certain countries that have
committed to implementing substantially similar controls under their
domestic laws but have not yet implemented them.
BIS also is expanding the scope of the existing `military end use'
and `military end user' control under Sec. 744.21 of the EAR for
Russia to apply to all items ``subject to the EAR'' except food and
medicine designated EAR99, or ECCN 5A992.c and 5D992.c unless for
Russian ``government end users'' and Russian state-owned enterprises
(SoEs). At the same time, this rule removes forty-five Russian entities
from the Military End-User (MEU) List in Supplement No. 7 to part 744
and adds them to the Entity List with an expanded license requirement
for the export, reexport, and transfer (in-country) of all items
``subject to the EAR,'' including those items subject to the Russia-MEU
FDP rule for `military end users' in Russia. Finally, BIS adds two new
Russian entities to the Entity List under this final rule and revises
two existing entries for Russian entities on the Entity List.
III. Amendments to the Export Administration Regulations (EAR)
A. Implementation of New Sanctions Against Russia
Addition of Expansive License Requirements, Restrictive License Review
Policies, and Restrictions on License Exception Eligibility for Russia
This final rule adds Sec. 746.8 to impose new sanctions against
Russia in part 746 of the EAR (Embargoes and Other Special Controls).
Under paragraph (a) (License Requirements) of this new section, this
final rule imposes three distinct types of license requirements. The
first requirement, set forth in paragraph (a)(1) is specific to the
export, reexport and transfer (in-country) of items in categories 3, 4,
5, 6, 7, 8 or 9 of the CCL. The second and third requirements, set
forth in paragraphs (a)(2) and (3) are specific to reexport, export
from abroad, and transfer (in-country) of foreign-produced ``direct
products'' subject to the EAR under the Russia or Russia-MEU FDP rules.
1. Section 746.8(a)(1) License Requirement
New Sec. 746.8(a)(1) (Items classified in an ECCN in CCL
Categories 3 through 9) is supplemental to the license requirements
found elsewhere in the EAR. Under this paragraph, a license is required
for the export, reexport, or transfer (in-country) to or within Russia
of any item subject to the EAR and specified in an ECCN in Categories
3, 4, 5, 6, 7, 8, or 9 of the CCL, excluding deemed exports and deemed
reexports. In implementing these controls, BIS imposes broad transfer
(in-country) requirements on an entire country, reflecting the
significance of the U.S. national security and foreign policy concerns,
resulting from the Russian further invasion of Ukraine. These license
requirements are intended to further restrict items to the Russian
military and defense sector. Additionally, paragraph (a)(1) extends EAR
license requirements to many items that did not previously require a
license to Russia on the basis of their CCL classification alone, such
as the parts and components used in civil aircraft controlled under
ECCN 9A991.d. Although these items generally are controlled at a lower
level under the EAR, they are still necessary for the functioning of
aircraft, vessels and electronic items. As such, restrictions on these
items can significantly limit Russia's ability to obtain items it is
not able to produce. In addition, with these new license requirements,
additional items will be treated as controlled U.S.-origin content for
purposes of de minimis calculations under supplement no. 2 to part 734
of the EAR, except as described in Sec. 746.8(a)(5). BIS estimates
that these new controls will result in an additional 350 license
applications being submitted to BIS annually.
2. Section 746.8(a)(2) License Requirement for the Russia FDP Rule
New paragraph (a)(2) (Foreign-produced ``direct product'' items
subject to the EAR under Russia FDP rule) requirements are imposed in
conjunction with the simultaneous creation of a new foreign ``direct
product'' rule specific to Russia (Russia FDP rule) in Sec. 734.9(f)
of the EAR. The Russia FDP rule establishes a license requirement for
foreign-produced items that meet certain product scope and destination
scope requirements in Sec. 734.9(f) of the EAR. Specifically, the
Russia FDP rule makes the ``direct product'' of a wide range of CCL
software and technology, or items produced by a complete plant or
`major component' of a plant that itself is the ``direct product'' of
such U.S.-origin technology or software, when it is known that the
foreign-produced item is destined to Russia or will be incorporated
into or used in the ``production'' or ``development'' of any ``part,''
``component,'' or ``equipment'' produced in or destined to Russia.
Notably, the product scope of the Russia FDP rule does not include
items designated EAR99 that are produced by ``technology'' or
``software'' as described in Sec. 734.9(f)(1)(i) or by a complete
plant or `major component' of a plant as described in Sec.
734.9(f)(1)(ii). The Russia FDP rule is described in greater detail
below.
Under paragraph (a)(2), a license is required for the reexport,
export from abroad, or transfer (in-country) of any foreign-produced
items subject to the EAR under the Russia FDP Rule described in Sec.
734.9(f) of the EAR to any destination. The phrase `any destination' is
used to address situations involving multi-step manufacturing processes
that occur in more than one country and in which the parties involved
have ``knowledge'' that the foreign-produced item being produced will
ultimately be reexported or exported from abroad to Russia. The license
requirements under paragraph (a)(2) will apply to the reexports or
exports from abroad from manufacturing country 1 to manufacturing
country 2 (each contributing to the production chain), when there is
``knowledge'' that the reexport or export from abroad of the item is
ultimately destined to Russia or incorporated into or used in the
[[Page 12228]]
production or development of any part component or equipment (not
designated EAR99) produced in or ultimately destined to Russia.
BIS estimates new license requirements under Sec. 746.8(a)(2) will
result in an additional 2,000 license applications being submitted to
BIS annually.
3. Section 746.8(a)(3) License Requirement for the Russia-MEU FDP Rule
New paragraph (a)(3) (Foreign-produced ``direct product'' items
subject to the EAR under Russia-Military End User FDP Rule)
requirements are imposed in conjunction with the simultaneous creation
by this rule of a new foreign ``direct product'' rule specific to
Russia (Russia-Military End User FDP Rule) in Sec. 734.9(g) of the
EAR. The Russia-Military End User FDP rule establishes a license
requirement for foreign-produced items that meet certain product scope
and destination scope requirements in Sec. 734.9(g) of the EAR.
Specifically, this Russia-Military End User FDP rule makes the ``direct
product'' of a wide range of CCL software and technology (any software
or technology in an ECCN in any category of the CCL subject to the EAR,
or items produced by a plant or major component of a plant that itself
is the ``direct product'' of such U.S.-origin technology or software)
when it is known that the foreign-produced item will be incorporated
into, or will be used in the ``production'' or ``development'' of any
``part,'' ``component,'' or ``equipment'' produced, purchased, or
ordered by any entity with a footnote 3 designation in the license
requirement column of the Entity List. Notably, the product scope of
the Russia-Military End User FDP rule includes items designated EAR99
that are a ``direct product'' of ``technology'' or ``software''
described in Sec. 734.9(g)(1)(i) or produced by a complete plant or
`major component' of a plant as described in Sec. 734.9(g)(1)(ii). The
Russia-MEU FDP rule is described in greater detail below.
Section 746.8(a)(3) specifies that except as described in paragraph
(a)(4) of this section, a license is required to reexport, export from
abroad, or transfer (in-country), to any destination, any foreign-
produced item subject to the EAR under Sec. 734.9(g) of the EAR other
than food or medicine designated as EAR99, or ECCN 5A992.c and 5D992.c
unless for Russian ``government end users'' and Russian state-owned
enterprises (SoEs). Because the Russia-Military End User FDP rule
includes ``software'' and ``technology'' in ECCNs in Categories 0, 1
and 2 (in addition to the other 7 categories of the CCL), the
likelihood that EAR99 food and medicine foreign direct products could
be subject to the EAR increases. To the extent that the direct product
of ECCN 0, 1, and 2 may encompass EAR99 food or medicine, this rule
exempts those items from the license requirement. For the same reasons
noted above in connection with paragraph (a)(2), this final rule also
uses the phrase `any destination.'
4. Countries Excluded From Certain Russia License Requirements Under
Section 746.8
This final rule also adds a new paragraph Sec. 746.8(a)(4)
(Exclusion from license requirements under paragraphs (a)(2) and (3))
to identify countries that BIS has determined are committed to
implementing substantially similar export controls as part of their
domestic sanctions against Russia. These countries warrant full or
partial exclusions, as appropriate, from the requirements set forth
under paragraphs (a)(2) and (3) as identified in supplement No. 3 to
part 746 (Russia Exclusions List). Similarly, this final rule adds new
paragraph (a)(5) (Exclusion from scope of U.S.-origin controlled
content under paragraph (a)(1)) to carve out certain content from the
scope of U.S.-origin controlled content for de minimis purposes under
supplement No. 2 to part 734 of the EAR when making a de minimis
calculation for Russia. New paragraph (a)(5) specifies that the license
requirements in paragraph (a)(1) of this section are not used to
determine controlled U.S.-origin content in a foreign-made item,
provided that: The U.S.-origin content is described in ECCNs that
either specify only Anti-terrorism (AT) in the reason for controls
paragraph of the ECCN or is classified under ECCN 9A991 and is included
in the Scope column of the Russia Exclusions List; and the foreign-made
item will be reexported or exported to Russia from a country in the
Russia Exclusions List.
As a conforming change, this final rule also revises supplement No.
2 to part 734--Guidelines for De Minimis Rules, by revising the third
sentence of paragraph (a)(1), which specifies using the license
requirements in part 746 for identifying U.S.-origin controlled content
for de minimis content. This final rule adds a parenthetical phrase
after part 746 to add the phrase ``excluding U.S.-origin content that
meets the criteria in Sec. 746.8(a)(5).''
Excluded countries for purposes of Sec. 746.8 are identified in
new supplement No. 3 to part 746--Countries Excluded from Certain
Russia License Requirements, also known as the Russia Exclusions List.
The new supplement includes three columns, identifying: (1) The
countries for purposes of the exclusion under Sec. 746.8(a)(4) and
(5); (2) the scope of the exclusion; and (3) the Federal Register
document announcing the addition of such countries to the supplement.
This final rule adds the twenty-seven countries of the European Union,
Australia, Canada, Japan, New Zealand, and the United Kingdom, as the
first countries in supplement No. 3 to part 746. The introductory text
of the Russia Exclusions List specifies that exclusions may be full or
partial. If a partial exclusion applies, the applicable ECCNs will be
described in the Scope column of list.
5. Licensing Policy for Applications Required Under Section 746.8
Under new Sec. 746.8(b) (Licensing policy), applications for the
export, reexport or transfer (in-country) of items that require a
license under new paragraph (a)(1) and (2) will be reviewed, with
certain limited exceptions, under a policy of denial. License
applications for certain categories of exports, reexports, and
transfers (in-country) will be reviewed on a case-by-case basis to
determine whether the transaction would benefit the Russian government
or defense sector. These categories are as follows: Applications
related to safety of flight, maritime safety, to meet humanitarian
needs, in support of government space cooperation, applications for
companies headquartered in Country Groups A:5 and A:6 to support civil
telecommunications infrastructure, or involving government-to-
government activities. In addition, applications for items destined to
certain companies operating in Russia will be reviewed on a case-by-
case basis if the companies are: (1) Wholly-owned U.S. subsidiaries;
(2) foreign subsidiaries of U.S. companies that are joint ventures with
other U.S. companies, (3) joint ventures of U.S. companies with
companies headquartered in Country Group A:5 and A:6 in supplement no.
1 to part 740 countries, (4) wholly-owned subsidiaries of companies
headquartered in Country Group A:5 and A:6 in supplement no. 1 to part
740 countries, or (5) joint ventures of companies headquartered in
Country Group A:5 and A:6 with other companies headquartered in Country
Groups A:5 and A:6. The case-by-case review policy does not apply to
Russian-headquartered companies. This final rule also specifies in
paragraph (b)
[[Page 12229]]
that license applications required under paragraph (a)(3) will be
reviewed under a policy of denial in all cases.
6. License Exceptions for Section 746.8 License Requirements
Lastly, under new paragraph (c) (License Exceptions), this final
rule specifies that certain license exceptions apply to Sec.
746.8(a)(1) and (2). Specifically, the license exceptions that apply
are: Certain sections of License Exception TMP for items for use by the
news media, Sec. 740.9(a)(9); License Exception GOV, Sec. 740.11(b);
License Exception TSU for software updates for civil end users provided
those civil end users are subsidiaries or joint ventures of companies
headquartered in the United States or a country or countries from
Country Groups A:5 or A:6, Sec. 740.13(c); License Exception BAG,
excluding firearms and ammunition (paragraph (e)), Sec. 740.14;
License Exception AVS, Sec. 740.15 (a) and (b); License Exception ENC,
excluding Russian ``government end users'' and Russian state owned
enterprises (SOEs), Sec. 740.17; and License Exception CCD, Sec.
740.19. This final rule also specifies in paragraph (c) that no license
exceptions may overcome the license requirements in paragraph (a)(3)
except as specified in the Entity List entry for a Footnote 3 entity on
the Entity List in supplement no. 4 to part 744 of the EAR, which is
consistent with the fact that entities on the Entity List are generally
not eligible for license exceptions.
B. New Russia and Russia-MEU FDP Rules
In Sec. 734.9 (Foreign-Direct Product (FDP) Rules), this final
rule adds two new Foreign-Direct Product (FDP) rules as part of the new
Russia sanctions. The first rule targets Russia as a destination, and
the second targets Russian `military end users.'
1. Addition of Russia FDP Rule
Through the Russia FDP rule set out in new paragraph (f) of Sec.
734.9 of the EAR, this rule establishes that a foreign-produced item
located outside the United States is subject to the EAR if it meets
both the product scope in paragraph (f)(1) of this section and the
destination scope in paragraph (f)(2). License requirements, license
review policy, and license exceptions applicable to the foreign-
produced items that are subject to the EAR pursuant to this paragraph
(f) are identified in Sec. 746.8, described above. Product scope for
the Russia FDP rule is defined in paragraph (f)(1)(i) (``Direct
product'' of ``technology'' or ``software'') and paragraph (f)(1)(ii)
(``Direct product'' of a complete plant or major component of a plant).
The criteria in paragraph (f)(1)(i) applies to a foreign-produced
item that is not designated EAR99 and that is the ``direct product'' of
U.S.-origin ``technology'' or ``software'' specified in any ECCN in
product groups D or E in Categories 3, 4, 5, 6, 7, 8, or 9 of the CCL.
The criteria in paragraph (f)(1)(ii) applies to a foreign-produced item
that is not designated EAR99 and is produced by any plant or `major
component' of a plant that itself is a ``direct product'' of U.S.-
origin ``technology'' or U.S.-origin ``software'' and specified in any
ECCN in product groups D or E in Categories 3, 4, 5, 6, 7, 8, or 9 of
the CCL. This is an expansive list of ``technology'' and ``software,''
which will result in many additional foreign-produced items being
considered ``subject to the EAR'' compared to the other existing FDP
rules that applied to Russia prior to the publication of this rule. The
additional foreign-produced items that will be ``subject to the EAR''
will be subject to the new license requirements imposed through this
rule under the Sanctions against Russia (new Sec. 746.8), as described
above.
For a foreign-produced item to be subject to the EAR under the
Russia FDP rule, the criteria in new Sec. 734.9(f)(2) (Destination
scope of the Russia FDP rule) must also be met. New paragraph (f)(2)
specifies that a foreign-produced item meets the destination scope of
the Russia FDP rule if there is ``knowledge'' that the foreign-produced
item is destined to Russia, or will be incorporated into, or used in
the ``production'' or ``development'' of any ``part,'' ``component,''
or ``equipment'' not designated EAR99 and produced in or destined to
Russia.
2. Addition of Russia-Military End User (Russia-MEU) FDP Rule
The Russia-MEU FDP rule set forth in new paragraph (g) targets
Russian `military end users' that, as described below, previously were
on the MEU List and are being removed from the MEU List and added to
the Entity List in Supplement No. 4 to part 744 of the EAR in this
final rule. To address the significant support that these `military end
users' provide to the Russian military, a new and more expansive FDP
rule is warranted for these identified `military end users' under the
EAR compared to the FDP rules that apply to certain destinations under
the EAR. This final rule adds a new paragraph (g) to impose this new
FDP rule targeting these Russian `military end users.' A foreign-
produced item located outside the United States is subject to the EAR
if it meets both the product scope in paragraph (g)(1) of Sec. 734.9
and the destination scope in paragraph (g)(2). License requirements,
license review policy, and license exceptions applicable to the
foreign-produced items that are subject to the EAR pursuant to
paragraph (g), which are now identified in Sec. 746.8, are described
above.
This final rule adds paragraph (g)(1)(i) (``Direct product'' of
``technology'' or ``software'') and paragraph (g)(1)(ii) (``Direct
product'' of a complete plant or major component of a plant) to define
the product scope for the Russia-MEU FDP rule. The criteria in
paragraph (g)(1)(i) extends to the ``direct product'' of ``technology''
or ``software'' subject to the EAR and specified in any ECCN in product
groups D or E in any category of the CCL. Paragraph (g)(1)(ii) applies
to a foreign-produced item that is produced by a plant or `major
component' of a plant that itself is a ``direct product'' of U.S.-
origin ``technology'' or U.S.-origin ``software'' subject to the EAR
and specified in any ECCN in product groups D or E in any category of
the CCL, which is an expansive list of ``technology'' and ``software.''
This will result in many additional foreign-produced items being
considered ``subject to the EAR'' compared to the other existing FDP
rules that applied to these Russian `military end users' prior to the
publication of this rule. The additional foreign-produced items that
will be ``subject to the EAR'' will be subject to the new license
requirements being imposed as part of the sanctions against Russia set
forth in new Sec. 746.8.
For a foreign-produced item to be subject to the EAR, the criteria
in new paragraph (g)(2) (End-user scope of the Russia MEU FDP rule)
must be met. New paragraph (g)(2) specifies that a foreign-produced
item meets the destination scope of the Russia MEU FDP rule if there is
``knowledge'' as specified in new paragraph (g)(2)(i) (Activities
involving Footnote 3 designated entities) that a foreign-produced item
will be incorporated into, or will be used in the ``production'' or
``development'' of any ``part,'' ``component,'' or ``equipment''
produced, purchased, or ordered by any entity with a footnote 3
designation in the license requirement column of the Entity List in
supplement No. 4 to part 744 of the EAR.
In a corresponding change, this final rule adds a new footnote 3 to
the Entity List for each of the Russian `military end users' that are
being removed from the MEU List and added to the Entity list as
described below. The new footnote 3 to
[[Page 12230]]
the Entity List is a key part of the criteria for the Russia-MEU FDP
rule and will include a cross reference back to Sec. Sec. 734.9(g),
746.8, and 744.21. With the changes described below, forty-five
entities on the Entity List now have a footnote 3 designation, as well
as two additional entities being added to the Entity List and two
existing entities that are being revised in this rule that will also
have the footnote 3 designation, for a total of forty-nine entities
with a footnote 3 designation. As specified in new paragraph (g)(2) of
Sec. 734.9, any entity with a footnote 3 designation in the license
requirement column of the Entity List is a party to any transaction
involving the foreign-produced item, e.g., as a ``purchaser,''
``intermediate consignee,'' ``ultimate consignee,'' or ``end-user.'' A
new Note 3 to paragraph (g) specifies that for purposes of paragraph
(g), a `military end user' is any entity listed on the Entity List
under Russia with a footnote 3 designation.
C. Conforming Changes
Based on the foregoing changes to the EAR, this final rule also
makes certain conforming changes to the Russia industry sector
sanctions in Sec. 746.5(a)(1); the Commerce Country Chart in
supplement No. 1 to part 738; the Consumer Communication Devices
license exceptions in Sec. 740.19; and certain licensing review
policies in part 742. In addition, this rule makes a correction to the
Entity List FDP rule in Sec. 734.9(e).
1. Russia Industry Sector Sanctions Changes
Under Sec. 746.5 (Russian industry sector sanctions), this final
rule revises paragraph (a)(1) (General prohibition) to make clarifying
edits and add a cross reference to new Sec. 746.8. As this paragraph
specifies that there are other provisions of the EAR that apply to
exports, reexports, and transfers (in-country) to Russia, a reference
to the new sanctions against Russia in Sec. 746.8 is needed to remind
exporters, reexporters, and transferors to also look at Sec. 746.8
when determining whether a license is required. This final rule also
revises the text to remove the reference to Section 6 of the Export
Administration Act of 1979 as this reference is outdated with the
passage of the Export Control Reform Act of 2018 (ECRA), and a
statutory reference is not necessary. This final rule also corrects the
web address referenced in supplement No. 2 to part 746--Russian
Industry Sector Sanction List to use the current web address being used
by the U.S. Census Bureau regarding Schedule B information.
2. Commerce Country Chart Change
In supplement No. 1 to part 738--Commerce Country Chart, as a
conforming change to the addition of new Sec. 746.8, this final rule
revises footnote 6 to add a reference to Sec. 746.8, so exporters,
reexporters, and transferors are aware of the need to also review
license requirements in Sec. 746.8 for items listed in any ECCN in
Categories 3, 4, 5, 6, 7, 8, or 9 of the CCL.
3. License Exception CCD Changes
This final rule amends License Exception CCD (Sec. 740.19), which
was previously limited to Cuba, by adding Russia as an additional
eligible destination. While Sec. 740.1(a) specifies that any license
exception authorizing reexports also authorizes in-country transfers,
provided the terms and conditions for reexports under that license
exception are met, this final rule revises Sec. 740.19 to add explicit
references to transfers (in-country). BIS is making this clarification
because new Sec. 746.8 imposes controls on transfers (in-country)
within Russia.
In Sec. 740.19(a) (Authorizations), this rule adds Russia and a
reference to transfers (in-country). Under the introductory text of
paragraph (b) (Eligible commodities and software), this rule adds
Russia and a reference to transfers (in-country) and removes an
outdated reference to Sudan. Finally, under paragraph (c)(1)
(Organizations), this final rule revises paragraph (c)(1)(i), which
identifies eligible end users for License Exception CCD, to add Russia
and a reference to transfers (in-country). The revision to paragraph
(c)(1)(i) specifies that License Exception CCD is limited to the
export, reexport, or transfer (in-country) of eligible commodities and
software to and for the use of independent non-governmental
organizations in Russia. This final rule further adds the Russian
Government to the exclusions under paragraph (c)(1)(ii) and adds a new
paragraph (c)(1)(iii) (Ineligible Russian Government Officials) to
exclude the specified officials from receiving commodities and software
under License Exception CCD. Only the end users named as eligible in
paragraph (c) may receive the commodities and software eligible under
License Exception CCD. This rule also amends paragraph (c)(2) as a
correction and clarification, to state that License Exception CCD
authorizes exports, reexports and transfers (in-country) to
individuals.
When License Exception CCD was initially added to the EAR in 2009,
the text of this paragraph only referenced exports. However, a reading
of paragraph (a) of the license exception and the preamble to the rule
that added the license exception to the EAR indicates that License
Exception CCD was intended to authorize both exports and reexports to
individuals. See 74 FR 45985 at 45987 (9/8/2009). The addition of
transfer (in-country) will clarify that the authorization applies not
only to reexports, but also to transfers (in-country).
4. Part 742 (Control Policy--CCL Based Controls) Changes
In part 742, as conforming changes to the license review policy of
denial added under paragraph (b) to new Sec. 746.8, this final rule
makes changes to license review policies in five sections: 742.2
(Proliferation of chemical and biological weapons), 742.3 (Nuclear
nonproliferation), 742.4 (National security), 742.5 (Missile
technology), and 742.6 (Regional stability).
Under Sec. 742.2, this final rule revises the second sentence of
paragraph (b)(4) to change the license review policy from presumption
of denial to policy of denial. This final rule adds two additional
sentences to clarify that certain items, such as items to Russia in
support of U.S.-Russia civil space cooperation activities, are reviewed
on a case-by-case basis as specified under Sec. 746.8(b).
In both Sec. Sec. 742.3 and 742.5, this final rule revises the
second sentence of paragraph (b)(4) to change the license review policy
from presumption of denial to policy of denial. For these sections,
this final rule also revises the third sentence to remove the reference
to commercial space launches from the case-by-case license review
policy, and adds a cross reference to the license review policy under
Sec. 746.8(b).
Under Sec. 742.4, this final rule revises the third sentence of
paragraph (b)(7)(i) to remove the reference to Russia because the
license review policy set forth in the paragraph will no longer apply
to Russia. This final rule also adds a new paragraph (b)(9), which
states that all applications for Russia will be reviewed in accordance
with the licensing policy set forth in Sec. 746.8(b).
Under Sec. 742.6, this final rule revises paragraph (b)(8) to
remove the reference to Russia because the license review policy set
forth in the paragraph will no longer apply to Russia. This final rule
also adds a new paragraph (b)(9), specifying that all applications for
Russia will be reviewed in accordance with the licensing policy set
forth in Sec. 746.8(b). Finally, to establish that license
applications for export, reexport or transfer (in-country) to or within
[[Page 12231]]
Russia will also be reviewed in accordance with the foreign policy
interest of promoting the observance of human rights throughout the
world and consistent with United States arms embargo policies in Sec.
126.1 of the ITAR (22 CFR 126.1), this final rule adds text to new
paragraph (b)(9) to carry over certain portions of the preexisting
license review policy for Russia under paragraph (b)(8).
5. Entity List FDP Rule Correction
On February 2, 2022, BIS published a rule in the Federal Register
entitled ``Foreign-Direct Product Rules: Organization, Clarification,
and Correction'' (87 FR 6022), which contained an error. In Sec.
734.9(e), BIS unintentionally omitted the term ``U.S.-origin'' in the
phrase `` ``direct product'' of ``technology'' or ``software'' subject
to the EAR.'' With this final rule, BIS fixes that error by reinserting
``U.S.-origin'' in `` ``direct product'' of ``U.S.-origin''
``technology'' or ``U.S.-origin'' ``software''.'' Lastly, as
clarification for purposes of the new Russia-Military End User FDP rule
that this rule adds to Sec. 734.9(g), as described above, BIS did not
intend to include ``U.S.-origin'' for purposes of paragraph (g)(1)(i),
but did intend its inclusion in paragraph (g)(1)(ii), as well as in new
paragraphs (f)(1)(i) and (ii) for the Russia FDP rule. This final rule,
thus, makes clarifying revisions to Sec. 734.9.
D. Changes to `Military End Use' and `End User' Controls for Russia
This final rule revises the scope of the `military end use' and
`military end user' controls under Sec. 744.21 of the EAR to reflect
the expanded controls for Russia, which, with the publication of this
final rule, apply to all items ``subject to the EAR'' instead of to the
narrower subset of items identified in supplement no. 2 to part 744. As
a result of the expanded controls for Russia for `military end users'
and `military end uses,' BIS is revising the Entity List in supplement
No. 4 to part 744 and the Military End-User (MEU) List in supplement
no. 7 to the same part to make conforming changes. Accordingly, this
final rule revises Sec. 744.21 paragraphs as follows to reflect the
expanded `military end use' and `military end user' controls for
Russia:
In paragraph (a), this final rule revises the first sentence to
remove Russia from the part of the sentence that specifies the
prohibition applies to the countries listed. This final rule further
revises that first sentence to add, after Venezuela, the phrase ``or
any item subject to the EAR except for food or medicine designated as
EAR99, or ECCN 5A992.c and 5D992.c unless for Russian ``government end
users'' and Russian state-owned enterprises (SoEs) to Russia'' to
specify that the prohibition is broader for Russia than it is for the
other countries subject to the requirements of Sec. 744.21.
BIS is revising paragraph (b)(1) (`Military End-User' (MEU) List)
to provide guidance for entities on the MEU List and for Russian
entities placed on the Entity List based on Sec. 744.21(b). Because
the prior requirements of the MEU List were limited to items identified
in supplement no. 2 to part 744 and the Russia-MEU restrictions now
apply to all items subject to the EAR as a consequence of the
publication of this rule, BIS is removing Russian entities that were
listed on the MEU List prior to this rule and placing them instead on
the Entity List. This change is consistent with the regulatory
construct for these two proscribed persons lists under the EAR (i.e.,
the MEU List restrictions apply to items identified in supplement no. 2
to part 744 and the Entity List restrictions, in most cases, apply to
all items subject to the EAR). This final rule removes the references
to Russia in the context of the MEU List and specifies that such
entities may be added to supplement No. 4 of part 744--the Entity
List--and are subject to license requirements that apply to all items
``subject to the EAR'' except for food or medicine designated as EAR99,
or ECCN 5A992.c and 5D992.c unless for Russian ``government end users''
and Russian state-owned enterprises (SoEs).
As conforming changes regarding the End-User Review Committee (ERC)
processes for the MEU List, this final rule revises paragraph (b)(1)(i)
(End-User Review Committee (ERC)) to add references to the Entity List
when the MEU List is referenced for the procedures in supplement No. 5
to part 744--Procedures for End-User Review Committee Entity List and
`Military End User' (MEU) List Decisions. This change is made to
clarify that the ERC procedure for adding entities to the MEU List also
apply to additions, modifications and removals from the Entity List for
entities added based on Sec. 744.21 of the EAR.
Under paragraph (b)(1)(ii) (License requirements for parties to the
transaction), this final rule revises the paragraph to clarify that the
license requirements for Burma, Cambodia, the People's Republic of
China, and Venezuela continue to apply for exports, reexports, and
transfers (in-country) of any item specified in supplement no. 2 to
part 744 when an entity included on the MEU List or meeting the
definition of `military end-user' as defined in Sec. 744.21(g) is a
party to the transaction as described in Sec. 748.5(c) through (f) of
the EAR. This final rule also revises paragraph (b)(1)(ii) to add a
sentence to clarify that, for purposes of Russia, a license requirement
applies to all items subject to the EAR for entities listed in
supplement No. 4 to part 744 (the Entity List) pursuant to Sec. 744.21
when such an entity is a party to the transaction as described in Sec.
748.5(c) through (f) of the EAR. These changes are necessary because,
with the publication of this final rule, the license requirements for
Russia will now be broader than for the other four countries.
Under paragraph (b)(2) (Requests for removal from or modification
of `Military End User' List (MEU)), this final rule revises the heading
to add a reference to the Entity List. This final rule also adds two
more references to the Entity List in this paragraph to specify that
the process for requesting removal or modification is the same for
entities listed on the MEU List or the Entity List on the basis of
Sec. 744.21 of the EAR.
Under paragraph (e) (License review standards), this final rule
revises the existing license review policy in paragraph (e)(1) to make
it specific to Burma, Cambodia, the People's Republic of China (China),
and Venezuela. This final rule adds a new sentence to paragraph (e)(1)
to specify that the license review policy for application to or within
Russia for the license requirements described in paragraph (a) will be
a policy of denial.
Under paragraph (g) (`Military end user'), the final rule makes a
correction to add back the parenthetical phrase ``(excluding those
described in Sec. 744.22(f)(2) of the EAR)'' after the term government
intelligence or reconnaissance organizations. This text was
inadvertently removed from the EAR in a December 9, 2021 (86 FR 70018)
final rule.
BIS estimates these changes to Sec. 744.21 will result in an
additional 75 license applications being submitted to BIS annually.
E. Military End-User (MEU) List and Entity List Changes for Russian
Entities
Under Sec. 744.11(b) (Criteria for revising the Entity List),
entities for which there is reasonable cause to believe, based on
specific and articulable facts, that the entities have been involved,
are involved, or pose a significant risk of being or becoming involved
in activities that are contrary to the national security or foreign
policy interests of the United States, and those acting on behalf of
such entities, may be
[[Page 12232]]
added to the Entity List. Paragraphs (b)(1) through (5) of Sec. 744.11
provide an illustrative list of activities that could be considered
contrary to the national security or foreign policy interests of the
United States. The Entity List in supplement no. 4 to part 744
identifies the entities so designated. The EAR impose additional
license requirements on, and limit the availability of most license
exceptions for, exports, reexports, and transfers (in-country) when an
entity that is listed on the Entity List is a party to the transaction
as described in Sec. 748.5(c) through (f) of the EAR. The license
review policy for each listed entity is identified in the ``License
Review Policy'' column on the Entity List, and the impact on the
availability of license exceptions is described in the relevant Federal
Register document adding entities to the Entity List. BIS places
entities on the Entity List pursuant to part 744 (Control Policy: End-
User and End-Use Based) and part 746 (Embargoes and Other Special
Controls) of the EAR.
The MEU List in supplement no. 7 to part 744 identifies entities
that have been determined by the End-User Review Committee (ERC) to be
`military end users' pursuant to Sec. 744.21. That section imposes
additional license requirements on, and limits the availability of most
license exceptions for, exports, reexports, and transfers (in-country)
when an entity listed on the MEU List is a party to the transaction as
described in Sec. 748.5(c) through (f) of the EAR, as specified in
supplement no. 7 to part 744 and in Sec. 744.21. Entities are listed
on the MEU List under the destinations of Burma, Cambodia, China, or
Venezuela. The license review policy for each listed entity is
identified in the introductory text of the MEU List and in Sec.
744.21(e). The MEU List's introductory text and Sec. 744.21 also
specify the scope of the license requirements and limitations on the
use of EAR license exceptions.
The ERC, composed of representatives of the Departments of Commerce
(Chair), State, Defense, Energy and, where appropriate, the Treasury,
makes all decisions regarding additions to, removals from, or other
modifications to the Entity List and the MEU List. The ERC makes all
decisions to add an entry to the Entity List or MEU List by majority
vote and all decisions to remove or modify an entry by unanimous vote.
Decisions on Entity or MEU List entries may also be made by higher-
level officials of agencies represented on the ERC.
1. Additions to the Entity List
This rule implements the decision of the Departments represented on
the ERC to add forty-seven entities to the Entity List, consisting of
the forty-five entities being moved from the MEU List to the Entity
List and an additional two entities that are newly listed in the EAR.
The agencies represented on the ERC made the decision to move the
forty-five entities identified below from the MEU List to the Entity
List pursuant to the standards set forth in Sec. Sec. 744.11(b) and
744.21(b) (including the revisions made in this final rule to the scope
of the latter section) of the EAR. Under the circumstances of the
Russia invasion of the Ukraine, there is a greater national security
and foreign policy threat posed by entities that have previously been
found to be supporting `military end uses' in Russia. The ERC used the
same standards set forth in Sec. Sec. 744.11(b) and 744.21(b) to
approve the additional two entities being added to the Entity List.
These forty-seven entities are `military end users' under the EAR. The
license requirements that will apply to them as a consequence of their
addition to the Entity List will further limit their ability to obtain
items subject to the EAR or obtain the benefit of technology or
software subject to the EAR when supporting military activities outside
of Russia in a manner contrary to U.S. national security or foreign
policy interests.
One of the forty-five entities being moved from the MEU List to the
Entity List, described further below, is the Ministry of Defence of the
Russian Federation, including the Armed Forces of Russia and all
operating units wherever located. This entity was listed as the
Ministry of Defence RF on the MEU List, but will be listed on the
Entity List under its full name, Ministry of Defence of the Russian
Federation, in this final rule. The entry this rule adds for the
Ministry of Defence of the Russian Federation includes the national
armed services (army, navy, marine, air force, or coast guard), as well
as the national guard and national police, government intelligence or
reconnaissance organizations of the Russian Federation. In addition,
this entry restricts exports, reexports and transfers (in-country) to
the national armed services (army, navy, marine, air force, or coast
guard), as well as the national guard and national police, government
intelligence or reconnaissance organizations of Russia wherever located
worldwide.
As a result of the changes to Sec. 744.21 described in this final
rule, the license requirements for `military end users' in Russia, now
apply to all items ``subject to the EAR,'' except for food or medicine
designated as EAR99, or ECCN 5A992.c and 5D992.c unless for Russian
``government end users'' and Russian state-owned enterprises (SoEs).
Accordingly, the agencies represented on the ERC decided to add forty-
five entities to the Entity List. As part of this ERC review effort,
the ERC also determined that the additional two entities should be
added to the Entity List because they are `military end users.' The
license requirements of the MEU List are limited to items identified in
supplement no. 2 to part 744. Therefore, the agencies represented on
the ERC determined that the MEU List was no longer the appropriate
supplement of the EAR in which to list these forty-five `military end
users' in Russia and that, for the additional two entities being added,
the public would benefit from their identification on the Entity List
as `military end users.'
The forty-five entities being moved from the MEU List to the Entity
List are: Admiralty Shipyard JSC; Aleksandrov Scientific Research
Technological Institute NITI; Argut OOO; Communication Center of the
Ministry of Defence; Federal Research Center Boreskov Institute of
Catalysis; Federal State Budgetary Enterprise of the Administration of
the President of Russia; Federal State Budgetary Enterprise Special
Flight Unit Rossiya of the Administration of the President of Russia;
Federal State Unitary Enterprise Dukhov Automatics Research Institute
(VNIIA); Foreign Intelligence Service (SVR); Forensic Center of Nizhniy
Novgorod Region Main Directorate of the Ministry of Interior Affairs;
Irkut Corporation; Irkut Research and Production Corporation Public
Joint Stock Company; Joint Stock Company Scientific Research Institute
of Computing Machinery; JSC Central Research Institute of Machine
Building (JSC TsNIIMash); JSC Kazan Helicopter Plant Repair Service;
JSC Rocket and Space Centre--Progress; Kamensk-Uralsky Metallurgical
Works J.S. Co.; Kazan Helicopter Plant PJSC; Komsomolsk-na-Amur
Aviation Production Organization (KNAAPO); Ministry of Defence of the
Russian Federation; Moscow Institute of Physics and Technology; NPO
High Precision Systems JSC; NPO Splav JSC; Oboronprom OJSC; PJSC Beriev
Aircraft Company; PJSC Irkut Corporation; PJSC Kazan Helicopters;
POLYUS Research Institute of M.F. Stelmakh Joint Stock Company;
Promtech-Dubna, JSC; Public Joint Stock Company United Aircraft
Corporation; Radiotechnical and
[[Page 12233]]
Information Systems (RTI) Concern; Rapart Services LLC; Rosoboronexport
OJSC (ROE); Rostec (Russian Technologies State Corporation); Rostekh--
Azimuth; Russian Aircraft Corporation MiG; Russian Helicopters JSC;
Sukhoi Aviation JSC; Sukhoi Civil Aircraft; Tactical Missiles
Corporation JSC; Tupolev JSC; UEC-Saturn; United Aircraft Corporation;
United Engine Corporation; and United Instrument Manufacturing
Corporation.
The ERC decided to add two new entities to the Entity List: The
International Center for Quantum Optics and Quantum Technologies LLC,
and SP Kvant. Both are being added, under the destination of Russia, to
the Entity List for acquiring and attempting to acquire U.S.-origin
items in support of nuclear explosive activities, unsafeguarded nuclear
activities, and safeguarded and unsafeguarded nuclear fuel-cycle
activities for Russia. The ERC determined that these activities are
contrary to the national security and foreign policy interests of the
United States under Sec. 744.11(b) of the EAR. These two entities are
considered `military end-users' for purposes of Sec. 744.21(b).
Pursuant to Sec. Sec. 744.11(b) and 744.21(b) of the EAR, the ERC
determined that the conduct of the above-described forty-seven entities
raises sufficient concerns that prior review, via the imposition of a
license requirement for exports, reexports, or transfers (in-country),
of all items subject to the EAR, except for food or medicine designated
as EAR99 involving these forty-seven entities is appropriate. This rule
also excludes ECCN 5A992.c and 5D992.c from the license requirement
involving eight of the entities being added that are not Russian
``government end users'' and Russian state-owned enterprises (SoEs).
The ERC also determined that the possible issuance of license denials
or the possible imposition of license conditions on shipments to these
entities will enhance BIS's ability to prevent violations of the EAR or
otherwise protect U.S. national security or foreign policy interests.
For the forty-seven entities added to the Entity List in this final
rule, BIS imposes a license requirement that applies to all items
subject to the EAR. BIS imposes a license review policy of denial for
these forty-seven entities. In addition, no license exceptions are
available for exports, reexports, or transfers (in-country) where the
entities added to the Entity List in this rule are parties to the
transaction as described in Sec. 748.5(c) through (f), with one
exception. The United States Government authorization under License
Exception GOV (Sec. 740.11(b)(2) and (e)) is available for two
entities being added to the Entity List: JSC Central Research Institute
of Machine Building (JSC TsNIIMash) and JSC Rocket and Space Centre--
Progress.
Also as described above under the description of Sec. 734.9, this
final rule adds new Footnote 3 to the Entity List for each of the
forty-five Russian `military end users' that are being moved from the
MEU List to the Entity list, as well as to the additional two entities
added to the Entity List. New Entity List footnote 3 is part of the
criteria for Russia-MEU FDP rule and will include a cross reference
back to Sec. Sec. 734.9(g) and 746.8. More entities may be added to
Footnote 3 in the future.
For the reasons described above, this final rule adds the following
forty-seven entities to the Entity List. The two new entities added to
the Entity List that were not previously on the MEU List are designated
with an asterisk:
RUSSIA
<bullet> Admiralty Shipyard JSC;
<bullet> Aleksandrov Scientific Research Technological Institute NITI;
<bullet> Argut OOO;
<bullet> Communication Center of the Ministry of Defence;
<bullet> Federal Research Center Boreskov Institute of Catalysis;
<bullet> Federal State Budgetary Enterprise of the Administration of
the President of Russia;
<bullet> Federal State Budgetary Enterprise Special Flight Unit Rossiya
of the Administration of the President of Russia;
<bullet> Federal State Unitary Enterprise Dukhov Automatics Research
Institute (VNIIA);
<bullet> Foreign Intelligence Service (SVR);
<bullet> Forensic Center of Nizhniy Novgorod Region Main Directorate of
the Ministry of Interior Affairs;
<bullet> *International Center for Quantum Optics and Quantum
Technologies LLC;
<bullet> Irkut Corporation;
<bullet> Irkut Research and Production Corporation Public Joint Stock
Company;
<bullet> Joint Stock Company Scientific Research Institute of Computing
Machinery;
<bullet> JSC Central Research Institute of Machine Building (JSC
TsNIIMash);
<bullet> JSC Kazan Helicopter Plant Repair Service;
<bullet> JSC Rocket and Space Centre--Progress;
<bullet> Kamensk-Uralsky Metallurgical Works J.S. Co.;
<bullet> Kazan Helicopter Plant PJSC;
Komsomolsk-na-Amur Aviation Production Organization (KNAAPO);
<bullet> Ministry of Defence of the Russian Federation including the
national armed services (army, navy, marine, air force, or coast
guard), as well as the national guard and national police, government
intelligence or reconnaissance organizations of the Russian Federation;
<bullet> Moscow Institute of Physics and Technology;
<bullet> NPO High Precision Systems JSC;
<bullet> NPO Splav JSC;
<bullet> Oboronprom OJSC;
<bullet> PJSC Beriev Aircraft Company;
<bullet> PJSC Irkut Corporation;
<bullet> PJSC Kazan Helicopters;
<bullet> POLYUS Research Institute of M.F. Stelmakh Joint Stock
Company;
<bullet> Promtech-Dubna, JSC;
<bullet> Public Joint Stock Company United Aircraft Corporation;
<bullet> Radiotechnical and Information Systems (RTI) Concern;
<bullet> Rapart Services LLC;
<bullet> Rosoboronexport OJSC (ROE);
<bullet> Rostec (Russian Technologies State Corporation);
<bullet> Rostekh--Azimuth;
<bullet> Russian Aircraft Corporation MiG;
<bullet> Russian Helicopters JSC;
<bullet> *SP Kvant;
<bullet> Sukhoi Aviation JSC;
<bullet> Sukhoi Civil Aircraft;
<bullet> Tactical Missiles Corporation JSC;
<bullet> Tupolev JSC;
<bullet> UEC-Saturn;
<bullet> United Aircraft Corporation;
<bullet> United Engine Corporation; and
<bullet> United Instrument Manufacturing Corporation.
The acronym ``a.k.a.,'' which is an abbreviation of ``also known
as,'' is used in entries on the Entity List to identify aliases,
thereby assisting exporters, reexporters, and transferors in
identifying entities on the Entity List.
2. Revision to the Entity List
This rule implements a modification to two existing entries for
``Federal Security Service (FSB)'' and ``Main Intelligence
Directorate'' that were both first added to the Entity List on January
4, 2017 (82 FR 724). Specifically, this rule modifies the entry for
these entities by adding a Footnote 3 designation as described above
because these existing entities have also been determined by the ERC to
be `military end users.'
3. Removals From the MEU List
This rule removes the forty-five entities located in Russia that
are described above from the MEU List. These forty-five entities were
added to the MEU List in three final rules. One entry, for JSC Kazan
Helicopter, was added to the MEU List on July 12, 2021
[[Page 12234]]
(86 FR 36509). One entry, for Moscow Institute of Physics and
Technology, was added to the MEU List on November 26, 2021 (86 FR
67323). The remaining forty-three entries were added to the MEU List on
December 23, 2020 (85 FR 83799). As described above, the ERC determined
to remove these forty-five entries from the MEU List and add them to
the Entity List to reflect the new scope of the license requirements
for military end users in Russia pursuant to Sec. 744.21, which will
now apply to all items ``subject to the EAR'' except for food or
medicine designated as EAR99, or ECCN 5A992.c and 5D992.c unless for
Russian ``government end users'' and Russian state-owned enterprises
(SoEs). The listing of entities added to the Entity List, above,
without an asterisk is identical to the list of entities being removed
from the MEU List.
F. Comprehensive Export Restrictions for the Covered Regions of
Ukraine; Conforming Revisions to Crimea Region of Ukraine Provisions
1. Background on Need for These Changes
On February 21, 2022, President Joseph Biden issued Executive Order
(E.O.) 14065, finding that the Russian Federation (Russia)'s
``purported recognition of the so-called Donetsk People's Republic
(DNR) or Luhansk People's Republic (LNR) regions of Ukraine contradicts
Russia's commitments under the Minsk agreements and further threatens
the peace, stability, sovereignty, and territorial integrity of
Ukraine, and thereby constitutes an unusual and extraordinary threat to
the national security and foreign policy of the United States.'' E.O.
14065 builds upon and expands the scope of the national emergency
declared by President Barack Obama in E.O. 13660 of March 6, 2014 with
respect to Russia's actions involving Ukraine. Subsequent E.O.s,
including E.O. 13661 of March 16, 2014, E.O. 13662 of March 20, 2014,
and E.O. 13685 of December 19, 2014, either expanded further or
otherwise took additional steps under President Obama's declaration of
national emergency to address Russia's destabilizing conduct.
Section 10 of E.O. 14065 directs all executive departments and
agencies of the United States to take all appropriate measures within
their authority to implement the E.O. Section One of E.O. 14065
prohibits ``the exportation, reexportation, sale, or supply, directly
or indirectly, from the United States, or by a United States person,
wherever located, of any goods, services, or technology to the Covered
Regions[.]'' Consistent with and to implement this prohibition, BIS is
expanding the restrictions in Sec. 746.6 of the EAR, to apply to
export, reexport, and in-country transfer transactions involving the
so-called DNR and LNR regions of Ukraine (collectively, the Covered
Regions). BIS initially promulgated the Sec. 746.6 restrictions
consistent with and to implement E.O. 13685 of December 19, 2014 (79 FR
77357), to which E.O. 14065 is similar in scope, pursuant to which
President Obama issued an export prohibition related to the Crimea
region of the Ukraine, to address the Russian occupation of that region
in 2014. Consistent with and to implement this prohibition, BIS imposed
new license requirements with respect to certain export, reexport, and
in-country transfer transactions involving the Crimea region of
Ukraine. (80 FR 4778, Jan. 29, 2015)
In this rule BIS amends the EAR by imposing a license requirement
for the export and reexport to the Covered Regions of Ukraine, and the
transfer within the Covered Regions of Ukraine, of all items subject to
the EAR, other than food and medicine designated as EAR99 and certain
software for internet-based personal communications. For purposes of
this rule, and consistent with E.O. 13685 and E.O. 14065, the term
`Covered Regions of Ukraine' includes the land territory in the DNR and
LNR regions, as well as any maritime areas over which sovereignty,
sovereign rights, or jurisdiction is claimed based on occupation of
(Crimea), or purported sovereignty (DNR and LNR) over, those land
territories. In addition to these substantive changes to Sec. 746.6 of
the EAR, BIS is making organizational and related technical edits to
account for these restrictions on the Covered Regions of Ukraine and to
simplify Sec. 746.6 and facilitate compliance with the provision's
requirements.
This rule establishes a policy of denial for the review of
applications involving all such exports or reexports to the Covered
Regions of Ukraine and transfers within the Covered Regions of Ukraine,
except with respect to items not exempt from the license requirement
but authorized under the Department of the Treasury's Office of Foreign
Assets Control (OFAC) Ukraine related General Licenses (discussed in
greater detail in the next paragraph), which BIS will review on a case-
by-case basis. Certain license exceptions are available for exports or
reexports to the Covered Regions of Ukraine or transfers within the
Covered Regions of Ukraine, specifically, the same license exceptions
currently available under Sec. 746.6 of the EAR to the Crimea region
of Ukraine.
As stated above, license applications for exports, reexports or
transfers authorized under OFAC General Licenses will be reviewed on a
case-by-case basis. In conjunction with the issuance of E.O. 14065,
OFAC issued six General Licenses (Ukraine General License numbers 17-
22) to ensure that humanitarian and other related activities can
continue in these regions. These General Licenses allow a short-term
wind down of activities, as well as for the export to the regions of
food, medicine, and medical devices, and ensure personal remittances
can continue to flow. They also allow telecommunications and internet
services to remain operational, and mail services to continue, as well
as allow international organizations to be able to provide aid to the
people in the Covered Regions of Ukraine.
This final rule includes a savings clause as described below. If an
export, reexport or transfer (in-country) does not qualify for the
savings clause described below but falls within the scope of OFAC's
Ukraine related General Licenses, an applicant may note this fact in
its BIS license application either under block 24 or in a separate
attachment. BIS will consider this fact as part of the license review
process.
As a reminder, the Donetsk People's Republic and Luhansk People's
Republic are listed on the Entity List. A license applies for the
export, reexport, and transfer (in-country) of all items subject to the
EAR that are destined for these two entities. See 79 FR 42452 (July 22,
2014) (``Donetsk People's Republic and Luhansk People's Republic are
both separatist organizations that operate in eastern Ukraine.'').
2. Revisions to the EAR for the Covered Regions of Ukraine; Conforming
Revisions to Crimea Region of Ukraine Provisions
To implement the changes described above, this final rule revises
Sec. 746.6 (Crimea region of Ukraine and the Covered Regions of
Ukraine) in part 746 (Embargoes and Other Special Controls) of the EAR.
The existing restrictions regarding Crimea are now located in paragraph
(a)(1), and new paragraph (a)(2) imposes a license requirement for
exports and reexports to the Covered Regions of Ukraine, and the
transfer within the Covered Regions of Ukraine, of all items subject to
the EAR, other than food and medicine designated as EAR99 and certain
software that is necessary to enable the exchange of personal
communications over the
[[Page 12235]]
internet. Such software must either be designated EAR99 or classified
as mass market software under Export Control Classification Number
(ECCN) 5D992.c of the EAR and must be widely available to the public at
no cost to the user. The license review policy for Crimea is now
located in paragraph (b)(1), and new paragraph (b)(2) specifies that
the license review policy for the Covered Regions of Ukraine is a
policy of denial, except for items authorized under OFAC's Ukraine
related General Licenses which will be reviewed on a case-by-case
basis.
The amendments to Sec. 746.6 of this rule do not change the
license requirements or available license exceptions for the Crimea
region of Ukraine. However, this rule amends the licensing policy, as
set forth in new paragraph (b), from a presumption of denial to a
policy of denial, to harmonize the license review policy for the Crimea
region of Ukraine with the more restrictive policy of denial that
applies to the Covered Regions of Ukraine given the significant
national security and foreign policy concerns related to those areas.
Paragraph (c) specifies the license exceptions that are available
to overcome the license requirements set forth in this section with
respect to either the Crimea region of Ukraine or the Covered Regions
of Ukraine. No license exceptions other than those license exceptions
(or paragraphs of license exceptions) listed in paragraph (c) are
available to overcome the license requirements of Sec. 746.6 of the
EAR. New paragraph (d) defines the terms `Covered Regions of Ukraine'
and `software necessary to enable the exchange of personal
communications over the internet' for purposes of this provision.
The license requirements imposed under part 746 of the EAR are
independent of the Commerce Control List (CCL)-based license
requirements. However, this rule revises the cross reference to Sec.
746.6 by revising footnote 8 to the Commerce Country Chart in
supplement No. 1 to part 738. This footnote 8 makes persons aware of
the additional part 746 license requirements under Sec. 746.6 that
apply for the `Crimea region of Ukraine and the Covered Regions of
Ukraine.' When applying for a license to the Crimea region of Ukraine
or the Covered Regions of Ukraine, applicants should select `Crimea,
DNR, and LNR regions' in the drop-down menu option under the country of
Ukraine in the Simplified Network Application Processing System (SNAP-
R).
This final rule, as a conforming change to the addition of Sec.
746.6 and the restrictions under paragraph (c), adds `the Covered
Regions of Ukraine' to the general restriction on the use of license
exceptions in Sec. 740.2 of the EAR for sanctioned countries by
revising the parenthetical phrase ``(Cuba, Iran, North Korea, Syria,
and Crimea region).'' This final rule adds `the Covered Regions of
Ukraine' to this parenthetical phrase because the license requirements
under Sec. 746.6 apply to all items subject to the EAR, and the only
license exceptions available to overcome the license requirement are
those specified in Sec. 746.6.
In addition to the EAR controls that this final rule is adding to
Sec. 746.6, exporters, reexporter and transferors will also be
required to ensure that any transaction with Crimea and `the Covered
Regions of Ukraine' occurs in accordance with all applicable OFAC
requirements. BIS and OFAC both exercise licensing jurisdiction for the
Crimea region of Ukraine and for ``the Covered Regions of Ukraine,'' so
for most exports, reexports and transfers (in-country), an
authorization will be required from both BIS and OFAC.
Lastly, this final rule revises the definition of ``Food'' in Sec.
772.1 to include a reference to `the Covered Regions of Ukraine' along
with North Korea, Syria, and Crimea that are referenced in the
definition. BIS estimates that these new controls for the Sec. 746.6
will result in an additional 20 license applications being submitted to
BIS annually.
G. Russia: Amendments to Supplement No. 1 to Part 740 of the EAR
Consistent With the ITAR Sec. 126.1
In supplement no. 1 to part 740, this final rule updates the
Country Group designation for Russia to reflect its identification by
the Department of State as a country subject to a United States arms
embargo. BIS harmonizes the arms embargo-related provisions in the EAR
with the Directorate of Defense Trade Control's (DDTC's) regulation of
arms embargoes in Sec. 126.1 of the International Traffic in Arms
Regulations (ITAR) (22 CFR 126.1, Prohibited Exports, Imports, and
Sales to or from Certain Countries). ITAR Sec. 126.1 includes
countries subject to United Nations Security Council (UNSC) and U.S.
arms embargoes. BIS primarily implements such controls through Country
Group D:5 ``U.S. Arms Embargoed Countries,'' in supplement no. 1 to
part 740 of the EAR. With this rule, BIS revises Country Group D to add
Russia to Country Group D:5 consistent with the Department of State's
amendments adding this country to ITAR Sec. 126.1 on March 18, 2021
(86 FR 14802).
Countries listed in Country Group D:5 are subject to additional
restrictions in the EAR, including with respect to de minimis U.S.
content, license exception availability, and licensing policy for
certain items. For example, license applications for the export or
reexport of items classified under 9x515 or ``600 series'' Export
Control Classification Numbers (ECCNs) to countries in Country Group
D:5 are reviewed consistent with the policies in Sec. 126.1 of the
ITAR, as provided in paragraph (b)(1)(ii) of Sec. 742.4 of the EAR.
Savings Clause
For the sanctions against Russia added under Sec. 746.8(a)(2) and
(3), shipments of items removed from eligibility for a License
Exception or reexport or transfer (in-country) without a license (NLR)
as a result of this regulatory action that were en route aboard a
carrier to a port of export, reexport, or transfer (in-country), on
March 26, 2022, pursuant to actual orders for reexport, or transfer
(in-country) to or within a foreign destination, may proceed to that
destination under the previous eligibility for a License Exception or
reexport or transfer (in-country) without a license (NLR).
For all other changes being made in this final rule, shipments of
items removed from eligibility for a License Exception or export,
reexport, or transfer (in-country) without a license (NLR) as a result
of this regulatory action that were en route aboard a carrier to a port
of export, reexport, or transfer (in-country), on February 24, 2022,
pursuant to actual orders for export, reexport, or transfer (in-
country) to or within a foreign destination, may proceed to that
destination under the previous eligibility for a License Exception or
export, reexport, or transfer (in-country) without a license (NLR).
Export Control Reform Act of 2018
On August 13, 2018, the President signed into law the John S.
McCain National Defense Authorization Act for Fiscal Year 2019, which
included the Export Control Reform Act of 2018 (ECRA) (codified, as
amended, at 50 U.S.C. Sections 4801-4852). ECRA provides the legal
basis for BIS's principal authorities and serves as the authority under
which BIS issues this rule. To the extent it applies to certain
activities that are the subject of this rule, the Trade Sanctions
Reform and Export Enhancement Act of 2000 (TSRA) (codified, as amended,
at 22 U.S.C.
[[Page 12236]]
Sections 7201-7211) also serves as authority for this rule. This action
also implements measures pursuant to the International Emergency
Economic Powers Act, 50 U.S.C. 1701 et seq., and the emergency expanded
upon by Executive Order 14065 of February 21, 2022.
Rulemaking Requirements
1. This final rule is not a ``significant regulatory action''
because it ``pertain[s]'' to a ``military or foreign affairs function
of the United States'' under sec. 3(d)(2) of Executive Order 12866.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et
seq.) (PRA), unless that collection of information displays a currently
valid Office of Management and Budget (OMB) Control Number.
This rule involves the following OMB-approved collections of
information subject to the PRA: 0694-0088, ``Multi-Purpose
Application,'' which carries a burden hour estimate of 29.6 minutes for
a manual or electronic submission; 0694-0096 ``Five Year Records
Retention Period,'' which carries a burden hour estimate of less than 1
minute; and 0607-0152 ``Automated Export System (AES) Program,'' which
carries a burden hour estimate of 3 minutes per electronic submission.
This rule changes the respondent burden under these control numbers by
increasing the estimated number of submissions by 2,445. Specifically,
BIS estimates that these new controls on Russia under the EAR will
result in an increase of 2,445 license applications submitted annually
to BIS. BIS estimates the burden hours associated with these
collections would increase by 1,247 (i.e., 2,445 applications x 30.6
minutes per response) for a total estimated cost increase of $37,410
(i.e., 1,247 hours x $30 per hour). The $30 per hour cost estimate for
OMB control number 0694-0088 is consistent with the salary data for
export compliance specialists currently available through <a href="http://glassdoor.com">glassdoor.com</a>
(<a href="http://glassdoor.com">glassdoor.com</a> estimates that an export compliance specialist makes
$55,280 annually, which computes to roughly $26.58 per hour). This
increase is expected to exceed the existing estimates currently
associated with OMB control numbers 0694-0088, but not for 0694-0096
and 0607-0152 which have minimal burden increases as a result of this
rule. Consistent with 5 CFR 1320.13, BIS requested emergency clearance
for an increase in the burden estimate under collection 0694-0088
because of the additional license requirements imposed by this rule.
OMB has approved the emergency collection for the increase in the total
number of licenses.
3. This rule does not contain policies with federalism implications
as that term is defined in Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of
2018 (50 U.S.C. 4821) (ECRA), this action is exempt from the
Administrative Procedure Act (APA) (5 U.S.C. 553) requirements for
notice of proposed rulemaking, opportunity for public participation,
and delay in effective date. While section 1762 of ECRA provides
sufficient authority for such an exemption, this action is also
independently exempt from these APA requirements because it involves a
military or foreign affairs function of the United States (5. U.S.C.
553(a)(1)).
5. Because a notice of proposed rulemaking and an opportunity for
public comment are not required to be given for this rule by 5 U.S.C.
553, or by any other law, the analytical requirements of the Regulatory
Flexibility Act, 5 U.S.C. 601, et seq., are not applicable.
Accordingly, no regulatory flexibility analysis is required and none
has been prepared.
List of Subjects
15 CFR Part 734
Administrative practice and procedure, Exports, Inventions and
patents, Research, Science and technology.
15 CFR Parts 738 and 772
Exports.
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
15 CFR Part 746
Exports, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, parts 734, 738, 740, 742,
744, 746, and 772 of the Export Administration Regulations (15 CFR
parts 730 through 774) are amended as follows:
PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS
0
1. The authority citation for 15 CFR part 734 continues to read as
follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp.,
p. 223; Notice of November 10, 2021, 86 FR 62891 (November 12,
2021).
0
2. Section 734.9 is amended as follows:
0
a. In paragraph (e)(1)(ii), remove the text `` ``direct product'' of
``technology'' or ``software'' subject to the EAR'' and add, in its
place, the text `` ``direct product'' of U.S.-origin ``technology'' or
``software''.
0
b. Add paragraphs (f) and (g).
The additions read as follows:
Sec. 734.9 Foreign-Direct Product (FDP) Rules.
* * * * *
(f) Russia FDP rule. A foreign-produced item is subject to the EAR
if it meets both the product scope in paragraph (f)(1) of this section
and the destination scope in paragraph (f)(2) of this section. See
Sec. 746.8 of the EAR for license requirements, license review policy,
and license exceptions applicable to foreign-produced items that are
subject to the EAR pursuant to this paragraph (f).
(1) Product scope of Russia FDP rule. The product scope applies if
a foreign-produced item meets the conditions of either paragraph
(f)(1)(i) or (ii) of this section.
(i) ``Direct product'' of ``technology'' or ``software.'' A
foreign-produced item meets the product scope of this paragraph
(f)(1)(i) if the foreign-produced item is not designated EAR99 and is a
``direct product'' of U.S.-origin ``technology'' or ``software''
subject to the EAR that is specified in any ECCN in product groups D or
E in Categories 3, 4, 5, 6, 7, 8, or 9 of the CCL; or
(ii) ``Direct product'' of a complete plant or `major component' of
a plant. A foreign-produced item, meets the product scope of this
paragraph (f)(1)(ii) if the foreign-produced item is not designated
EAR99 and is produced by any plant or `major component' of a plant that
is located outside the United States, when the plant or `major
component' of a plant, whether made in the United States or a foreign
country, itself is a ``direct product'' of U.S.-origin ``technology''
or ``software'' subject to the EAR that is specified in any ECCN
[[Page 12237]]
in product groups D or E in Categories 3, 4, 5, 6, 7, 8, or 9 of the
CCL.
(2) Destination scope of the Russia FDP rule. A foreign-produced
item meets the destination scope of this paragraph (f)(2) if there is
``knowledge'' that the foreign-produced item is destined to Russia or
will be incorporated into or used in the ``production'' or
``development'' of any ``part,'' ``component,'' or ``equipment'' not
designated EAR99 and produced in or destined to Russia.
(g) Russia-Military End User FDP rule. A foreign-produced item is
subject to the EAR if it meets both the product scope in paragraph
(g)(1) of this section and the end-user scope in paragraph (g)(2) of
this section. See Sec. 746.8 of the EAR for license requirements,
license review policy, and license exceptions applicable to foreign-
produced items that are subject to the EAR pursuant to this paragraph
(g).
(1) Product Scope of Russia-Military End User FDP rule. The product
scope applies if a foreign-produced item meets the conditions of either
paragraph (g)(1)(i) or (ii) of this section.
(i) ``Direct product'' of ``technology'' or ``software.'' A
foreign-produced item meets the product scope of this paragraph
(g)(1)(i) if the foreign-produced item is a ``direct product'' of
``technology'' or ``software'' subject to the EAR and specified in any
ECCN in product groups D or E in any categories of the CCL; or
(ii) ``Direct product'' of a complete plant or `major component' of
a plant. A foreign-produced item meets the product scope of this
paragraph (g)(1)(ii) if the foreign-produced item is produced by any
plant or `major component' of a plant that is located outside the
United States, when the plant or `major component' of a plant, whether
made in the United States or a foreign country, itself is a ``direct
product'' of U.S.-origin ``technology'' or ``software'' subject to the
EAR that is specified in any ECCN in product groups D or E in any
categories of the CCL.
(2) End-user scope of the Russia `Military End User' FDP rule. A
foreign-produced item meets the end-user scope of this paragraph (g)(2)
if there is ``knowledge'' that:
(i) Activities involving footnote 3 designated entities. The
foreign-produced item will be incorporated into, or used in the
``production'' or ``development'' of any ``part,'' ``component,'' or
``equipment'' produced, purchased, or ordered by any entity with a
footnote 3 designation in the license requirement column of the Entity
List in Supplement No. 4 to part 744 of the EAR; or
(ii) Footnote 3 designated entities as transaction parties. Any
entity with a footnote 3 designation in the license requirement column
of the Entity List in Supplement No. 4 to part 744 of the EAR is a
party to any transaction involving the foreign-produced item, e.g., as
a ``purchaser,'' ``intermediate consignee,'' ``ultimate consignee,'' or
``end-user.''
Note 3 to paragraph (g). A `military end user' for purposes of
paragraph (g) is any entity listed on the Entity List in Supplement
No. 4 to part 744 of the EAR under Russia with a footnote 3
designation.
0
3. Supplement No. 2 to part 734 is amended by revising the third and
fourth sentences of paragraph (a)(1) to read as follows:
Supplement No. 2 to Part 734--Guidelines for De Minimis Rules
(a) * * *
(1) * * * For purposes of identifying U.S.-origin controlled
content, you should consult the Commerce Country Chart in Supplement
No. 1 to part 738 of the EAR and controls described in part 746 of
the EAR (excluding U.S.-origin content that meets the criteria in
Sec. 746.8(a)(5)). Part 744 of the EAR should not be used to
identify controlled U.S. content for purposes of determining the
applicability of the de minimis rules. * * *
* * * * *
PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART
0
4. The authority citation for 15 CFR part 738 continues to read as
follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 10 U.S.C. 8720; 10 U.S.C. 8730(e); 22 U.S.C.
287c; 22 U.S.C. 2151 note; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004;
42 U.S.C. 2139a; 15 U.S.C. 1824; 50 U.S.C. 4305; 22 U.S.C. 7201 et
seq.; 22 U.S.C. 7210; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783.
0
5. Supplement no. 1 to part 738 is amended by revising footnotes 6 and
8 to read as follows:
Supplement No. 1 to Part 738--Commerce Country Chart
* * * * *
\6\ See Sec. 746.5 of the EAR for additional license
requirements under the Russian Industry Sector Sanctions for ECCNs
0A998, 1C992, 3A229, 3A231, 3A232, 6A991, 8A992, and 8D999 and items
identified in Supplement No. 2 to part 746 of the EAR. See Sec.
746.8 of the EAR for Sanctions against Russia, including additional
license requirements for items listed in any ECCN in Categories 3,
4, 5, 6, 7, 8, or 9 of the CCL.
* * * * *
\8\ See Sec. 746.6 of the EAR for additional license
requirements for exports and reexports to the Crimea region of
Ukraine and the so-called Donetsk People's Republic (DNR) and
Luhansk People's Republic (LNR) regions of Ukraine and transfers
(in-country) within the Crimea, DNR, and LNR regions of Ukraine for
all items subject to the EAR, other than food and medicine
designated as EAR99 and certain EAR99 or ECCN 5D992.c software for
internet-based communications.
PART 740--LICENSE EXCEPTIONS
0
6. The authority citation for 15 CFR part 740 continues to read as
follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR,
2001 Comp., p. 783.
0
7. Section 740.2 is amended by revising paragraph (a)(6) to read as
follows:
Sec. 740.2 Restrictions on all License Exceptions.
(a) * * *
(6) The export or reexport is to a sanctioned destination (Cuba,
Iran, North Korea, Syria, Crimea region of Ukraine, and the so-called
Donetsk People's Republic (DNR) and Luhansk People's Republic (LNR)
regions of Ukraine) or a license is required based on a limited
sanction (Russia) unless a license exception or portion thereof is
specifically listed in the license exceptions paragraph pertaining to a
particular sanctioned country in part 746 of the EAR.
* * * * *
0
8. Section 740.19 is amended by revising paragraphs (a), (b)
introductory text, and (c) to read as follows:
Sec. 740.19 Consumer Communications Devices (CCD).
(a) Authorizations. This section authorizes the export, reexport,
or transfer (in-country) of commodities and software to Cuba and Russia
subject to the requirements stated in this section. This section does
not authorize U.S. owned or controlled entities in third countries to
engage in reexports of foreign produced commodities to Cuba for which
no license would be issued by the Department of the Treasury pursuant
to 31 CFR 515.559.
(b) Eligible commodities and software. Commodities and software in
paragraphs (b)(1) through (17) of this section are eligible for export,
reexport, or transfer (in-country) under this section to and within
Cuba and Russia.
* * * * *
(c) Eligible and ineligible end users--(1) Organizations. (i) The
license exception in this section may be used to export, reexport, or
transfer (in-country) eligible commodities and software to
[[Page 12238]]
and for the use of independent non-governmental organizations in Cuba
or Russia.
(ii) The Cuban Government, the Cuban Communist Party, the Russian
Government, and organizations administered or controlled by the Cuban
Government, the Cuban Communist Party, or the Russian Government are
not eligible end users.
(iii) [Reserved]
(2) Individuals. The license exception in this section may be used
to export, reexport or transfer (in-country) eligible commodities and
software to and for the use of individuals other than the following:
(i) Ineligible Cuban Government officials. Ministers and Vice-
Ministers; members of the Council of State; members of the Council of
Ministers; members and employees of the National Assembly of People's
Power; members of any provincial assembly; local sector chiefs of the
Committees for the Defense of the Revolution; Director Generals and
sub-Director Generals and higher of all Cuban ministries and state
agencies; employees of the Ministry of the Interior (MININT); employees
of the Ministry of Defense (MINFAR); secretaries and first secretaries
of the Confederation of Labor of Cuba (CTC) and its component unions;
chief editors, editors and deputy editors of Cuban state-run media
organizations and programs, including newspapers, television, and
radio; or members and employees of the Supreme Court (Tribuno Supremo
Nacional).
(ii) Ineligible Cuban Communist Party officials. Members of the
Politburo.
(iii) Ineligible Russian Government officials. The President, Prime
Minister, and Deputy Prime Ministers; Federal Ministers; Chairman,
Deputy Chairman, and Secretary of the Security Council; members and
employees of the Federal Assembly (the State Duma and the Federation
Council); members and employees of the Supreme Court and the
Constitutional Court; Chief and all employees of the General Staff of
the armed forces; employees of the Ministry of Defence; Director and
employees of the Federal Security Service, Director and employees of
the Foreign Intelligence Service; employees of the Ministry of the
Interior; employees of state committees, chief editors, editors and
deputy editors of Russian state-run media organizations and programs,
including newspapers, television, and radio; offices, services,
agencies and other entities organized under or reporting to the federal
government.
0
9. Supplement no. 1 to part 740 is amended by revising the entry for
``Russia'' and footnote 1 in the Country Group D table to read as
follows:
Supplement No. 1 to Part 740--Country Groups
* * * * *
Country Group D
--------------------------------------------------------------------------------------------------------------------------------------------------------
[D:5] U.S. arms
Country [D:1] National [D:2] Nuclear [D:3] Chemical [D:4] Missile embargoed
security & biological technology countries \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
Russia............................................................. X X X X X
* * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Note to Country Group D:5: Countries subject to U.S. arms embargoes are identified by the State Department through notices published in the Federal
Register. The list of arms embargoed destinations in this table is drawn from 22 CFR 126.1 and State Department Federal Register notices related to
arms embargoes (compiled at <a href="http://www.pmddtc.state.gov/embargoed_countries/index.html">www.pmddtc.state.gov/embargoed_countries/index.html</a>) and will be amended when the State Department publishes subsequent
notices. If there are any discrepancies between the list of countries in this table and the countries identified by the State Department as subject to
a U.S. arms embargo (in the Federal Register), the State Department's list of countries subject to U.S. arms embargoes shall be controlling.
* * * * *
PART 742--CONTROL POLICY--CCL BASED CONTROLS
0
10. The authority citation for 15 CFR part 742 is revised to read as
follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117
Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O.
12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR
59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; Presidential Determination 2003-23, 68 FR 26459, 3 CFR, 2004
Comp., p. 320; Notice of November 10, 2021, 86 FR 62891 (November
12, 2021).
0
11. Section 742.2 is amended by revising paragraph (b)(4) to read as
follows:
Sec. 742.2 Proliferation of chemical and biological weapons.
* * * * *
(b) * * *
(4) License applications for items described in paragraph (a) of
this section, when destined for the People's Republic of China will be
reviewed in accordance with the licensing policies in both paragraph
(b) of this section and Sec. 742.4(b)(7). When such items are destined
to Russia, license applications will be reviewed under a policy of
denial. However, exports and reexports of items to Russia in support of
U.S.-Russia civil space cooperation activities will be reviewed on a
case-by-case basis, as well as certain other certain specified
activities specified in Sec. 746.8 of the EAR. See Sec. 746.8(b).
* * * * *
0
12. Section 742.3 is amended by revising paragraph (b)(4) to read as
follows:
Sec. 742.3 Nuclear nonproliferation.
* * * * *
(b) * * *
(4) License applications for items described in paragraph (a) of
this section, when destined for the People's Republic of China will be
reviewed in accordance with the licensing policies in both paragraph
(b) of this section and Sec. 742.4(b)(7). When such items are destined
to Russia, license applications will be reviewed under a policy of
denial. However, exports and reexports of items to Russia in support of
U.S.-Russia civil space cooperation activities will be reviewed on a
case-by-case basis. See Sec. 746.8(b) of the EAR.
* * * * *
0
13. Section 742.4 is amended by revising paragraph (b)(7)(i) and adding
paragraph (b)(9) to read as follows:
Sec. 742.4 National security.
* * * * *
(b) * * *
[[Page 12239]]
(7)(i) For Burma, Cambodia, the People's Republic of China (China),
and Venezuela, all applications will be reviewed to determine the risk
of diversion to a military end user or military end use. There is a
general policy of approval for license applications to export,
reexport, or transfer items determined to be for civil end users for
civil end uses. There is a presumption of denial for license
applications to export reexport, or transfer items that would make a
material contribution to the ``development,'' ``production,''
maintenance, repair, or operation of weapons systems, subsystems, and
assemblies, such as, but not limited to, those described in supplement
no. 7 to this part, of Burma, Cambodia, China, or Venezuela.
* * * * *
(9) For the Russian Federation, all applications will be reviewed
in accordance with the licensing policy set forth in Sec. 746.8(b) of
the EAR.
* * * * *
0
14. Section 742.5 is amended by revising paragraph (b)(5) to read as
follows:
Sec. 742.5 Missile technology.
* * * * *
(b) * * *
(5) License applications for items described in paragraph (a) of
this section, when destined for the People's Republic of China, will be
reviewed in accordance with the licensing policies in both paragraph
(b) of this section and Sec. 742.4(b)(7). When such items are destined
to Russia, license applications will be reviewed under a policy of
denial. However, exports and reexports of items to Russia in support of
U.S.-Russia civil space cooperation activities will be reviewed on a
case-by-case basis. See Sec. 746.8(b).
* * * * *
0
15. Section 742.6 is amended by revising paragraph (b)(8) and adding
paragraph (b)(9) to read as follows:
Sec. 742.6 Regional stability.
* * * * *
(b) * * *
(8) China or Venezuela. Applications to export or reexport items
described in paragraph (a)(7) of this section to China or Venezuela
will be reviewed on a case-by-case basis to determine whether the
transaction is contrary to the national security or foreign policy
interests of the United States, including the foreign policy interest
of promoting the observance of human rights throughout the world. Such
applications will also be reviewed consistent with United States arms
embargo policies in Sec. 126.1 of the ITAR (22 CFR 126.1). When
destined to China, items classified under any 9x515.y ECCN will be
subject to a policy of denial consistent with paragraph (b)(1) of this
section.
(9) Russia. Applications to export or reexport items described in
paragraph (a)(7) of this section will be reviewed pursuant to the
licensing policy set forth in Sec. 746.8(b) of the EAR, as well as the
foreign policy interest of promoting the observance of human rights
throughout the world and consistent with United States arms embargo
policies in Sec. 126.1 of the ITAR (22 CFR 126.1).
* * * * *
PART 744--END USE AND END USER CONTROLS
0
16. The authority citation for 15 CFR part 744 continues to read as
follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026,
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice
of September 15, 2021, 86 FR 52069 (September 17, 2021); Notice of
November 10, 2021, 86 FR 62891 (November 12, 2021).
0
17. Section 744.21 is revised to read as follows:
Sec. 744.21 Restrictions on certain `military end use' or `military
end user' in Burma, Cambodia, the People's Republic of China, the
Russian Federation, or Venezuela.
(a) General prohibition. In addition to the license requirements
for items specified on the Commerce Control List (CCL) (supplement no.
1 to this part), you may not export, reexport, or transfer (in-country)
any item subject to the EAR listed in supplement no. 2 to this part to
Burma, Cambodia, the People's Republic of China (China), or Venezuela,
or any item ``subject to the EAR'' except for food or medicine
designated as EAR99, or ECCN 5A992.c and 5D992.c unless for Russian
``government end users'' and Russian state-owned enterprises (SoEs) to
the Russian Federation, without a license if, at the time of the
export, reexport, or transfer (in-country), you have ``knowledge,'' as
defined in Sec. 772.1 of the EAR, that the item is intended, entirely
or in part, for a `military end use,' as defined in paragraph (f) of
this section, or a `military end user,' as defined in paragraph (g) of
this section, in Burma, Cambodia, China, the Russian Federation, or
Venezuela.
(b) Additional prohibition on those informed by BIS. BIS may inform
you either individually by specific notice, through amendment to the
EAR published in the Federal Register, or through a separate
notification published in the Federal Register, that a license is
required for specific exports, reexports, or transfers (in-country) of
any item because there is an unacceptable risk of use in or diversion
to a `military end use' or `military end user' in Burma, Cambodia,
China, the Russian Federation, or Venezuela. Specific notice will be
given only by, or at the direction of, the Deputy Assistant Secretary
for Export Administration. When such notice is provided orally, it will
be followed by written notice within two working days signed by the
Deputy Assistant Secretary for Export Administration or the Deputy
Assistant Secretary's designee. The absence of BIS notification does
not excuse the exporter from compliance with the license requirements
of paragraph (a) of this section.
(1) `Military End-User' (MEU) List and Entity List. BIS may inform
and provide notice to the public that certain entities are subject to
the additional prohibition described under this paragraph (b) following
a determination by the End-User Review Committee (ERC) that a specific
entity is a `military end user' pursuant to this section and therefore
any exports, reexports, or transfers (in-country) to that entity
represent an unacceptable risk of use in or diversion to a `military
end use' or `military end user' in Burma, Cambodia, China, the Russian
Federation or Venezuela. Such entities in Burma, Cambodia, China, or
Venezuela may be added to supplement no. 7 to this part--`Military End-
User' (MEU) List. Such entities in the Russian Federation may be added
to supplement No. 4 to this part--Entity List. License requirements for
listed MEU are described in paragraph (b)(1)(ii) of this section. The
listing of entities under supplement no. 7 or 4 to this part is not an
exhaustive listing of `military end users' for purposes of this
section. Exporters, reexporters, and transferors are responsible for
determining whether transactions with entities not listed on supplement
no. 7 or 4 to this part are subject to a license requirement under
paragraph (a) of this section. The process in this paragraph (b)(1) for
placing entities on the MEU List and Entity List is only one method BIS
may use to inform exporters, reexporters, and transferors of license
requirements under this section.
[[Page 12240]]
(i) End-User Review Committee (ERC). The End-User Review Committee
(ERC), composed of representatives of the Departments of Commerce
(Chair), State, Defense, Energy and, where appropriate, the Treasury,
makes all decisions regarding additions to, removals from, or other
modifications to the MEU List and Entity List. Decisions by the ERC for
purposes of the MEU List and Entity List will be made following the
procedures identified in this section and in supplement no. 5 to this
part--Procedures for End-User Review Committee Entity List and
`Military End User' (MEU) List Decisions.
(ii) License requirement for parties to the transaction. Consistent
with paragraph (a) of this section, a license is required for the
export, reexport, or transfer (in-country) of any item subject to the
EAR listed in supplement no. 2 to this part when an entity that is
listed on the MEU List under Burma, Cambodia, the People's Republic of
China (China), or Venezuela is a party to the transaction as described
in Sec. 748.5(c) through (f) of the EAR. Consistent with paragraph (a)
of this section, a license is required for the export, reexport, or
transfer (in-country) of any item subject to the EAR except for food or
medicine designated as EAR99, or ECCN 5A992.c and 5D992.c unless for
Russian ``government end users'' and Russian state-owned enterprises
(SoEs) to Russia when an entity that is listed on the Entity List under
Russia pursuant to this section is a party to the transaction as
described in Sec. 748.5(c) through (f) of the EAR.
(2) Requests for removal from or modification of `Military End
User' (MEU) List and Entity List. Any entity listed on the MEU List or
Entity List pursuant to this section may request that its listing be
removed or modified. All such requests, including reasons therefor,
must be in writing and sent to: Chair, End-User Review Committee,
Bureau of Industry and Security, U.S. Department of Commerce, 14th
Street and Pennsylvania Avenue NW, Room 3886, Washington, DC 20230; or
by email at <a href="/cdn-cgi/l/email-protection#31746372715358421f555e521f565e47"><span class="__cf_email__" data-cfemail="2663746566444f550842494508414950">[email protected]</span></a>. In order for an entity listed on the MEU
List or the Entity List pursuant to this section to petition BIS for
their removal or modification, as applicable, the entity must address
why the entity is not a `military end user' for purposes of this
section.
(i) Review. The ERC will review such requests for removal or
modification in accordance with the procedures set forth in supplement
no. 5 to this part.
(ii) BIS action. The Deputy Assistant Secretary for Export
Administration will convey the decision on the request to the requester
in writing. That decision will be the final agency action on the
request.
(c) License exception. Despite the prohibitions described in
paragraphs (a) and (b) of this section, you may export, reexport, or
transfer (in-country) items subject to the EAR under the provisions of
License Exception GOV set forth in Sec. 740.11(b)(2)(i) and (ii) of
the EAR.
(d) License application procedure. When submitting a license
application pursuant to this section, you must state in the
``additional information'' block of the application that ``this
application is submitted because of the license requirement in this
section (Restrictions on a 'Military End Use' or `Military End User' in
Burma, Cambodia, the People's Republic of China, the Russian
Federation, or Venezuela).'' In addition, either in the additional
information block of the application or in an attachment to the
application, you must include all known information concerning the
`military end use' and `military end user(s)' of the item(s). If you
submit an attachment with your license application, you must reference
the attachment in the ``additional information'' block of the
application.
(e) License review standards. (1) Applications to export, reexport,
or transfer (in-country) items to or within Burma, Cambodia, the
People's Republic of China (China), or Venezuela described in paragraph
(a) of this section will be reviewed with a presumption of denial.
Applications to export, reexport, or transfer (in-country) items to or
within Russia described in paragraph (a) of this section will be
reviewed with a policy of denial.
(2) Applications may be reviewed under chemical and biological
weapons, nuclear nonproliferation, or missile technology review
policies, as set forth in Sec. Sec. 742.2(b)(4), 742.3(b)(4), and
742.5(b)(4) of the EAR, if the end use may involve certain
proliferation activities.
(3) Applications for items requiring a license for any reason that
are destined to Burma, Cambodia, China, the Russian Federation, or
Venezuela for a `military end use' or `military end user' also will be
subject to the review policy stated in paragraph (e)(1) of this
section.
(f) Military end use. In this section, 'military end use' means:
Incorporation into a military item described on the U.S. Munitions List
(USML) (22 CFR part 121, International Traffic in Arms Regulations);
incorporation into items classified under Export Control Classification
Numbers (ECCNs) ending in ``A018'' or under ``600 series'' ECCNs; or
any item that supports or contributes to the operation, installation,
maintenance, repair, overhaul, refurbishing, ``development,'' or
``production,'' of military items described on the USML, or items
classified under ECCNs ending in ``A018'' or under ``600 series''
ECCNs.
(g) Military end user. In this section, the term `military end
user' means the national armed services (army, navy, marine, air force,
or coast guard), as well as the national guard and national police,
government intelligence or reconnaissance organizations (excluding
those described in Sec. 744.22(f)(2)), or any person or entity whose
actions or functions are intended to support `military end uses' as
defined in paragraph (f) of this section.
(h) Effects on contracts. Transactions involving the export,
reexport, or transfer (in country) of items to or within Venezuela are
not subject to the provisions of this section if the contracts for such
transactions were signed prior to November 7, 2014.
0
18. Supplement No. 4 to part 744 is amended:
0
a. Under Russia:
0
i. By adding in alphabetical order entries for ``Admiralty Shipyard
JSC;'' ``Aleksandrov Scientific Research Technological Institute
NITI;'' ``Argut OOO;'' ``Communication Center of the Ministry of
Defence;'' ``Federal Research Center Boreskov Institute of Catalysis;''
0
ii. By revising the entry for ``Federal Security Service (FSB);''
0
iii. By adding in alphabetical order entries for ``Federal State
Budgetary Enterprise of the Administration of the President of
Russia;'' '' Federal State Budgetary Enterprise Special Flight Unit
Rossiya of the Administration of the President of Russia;'' ``Federal
State Unitary Enterprise Dukhov Automatics Research Institute
(VNIIA);'' ``Foreign Intelligence Service (SVR);'' ``Forensic Center of
Nizhniy Novgorod Region Main Directorate of the Ministry of Interior
Affairs;'' ``International Center for Quantum Optics and Quantum
Technologies LLC;'' ``Irkut Corporation;'' ``Irkut Research and
Production Corporation Public Joint Stock Company;'' ``Joint Stock
Company Scientific Research Institute of Computing Machinery;'' ``JSC
Central Research Institute of Machine Building (JSC TsNIIMash);'' ``JSC
Kazan Helicopter Plant Repair Service;'' ``JSC Rocket and Space
Centre--Progress;'' ``Kamensk-Uralsky Metallurgical Works J.S. Co.;''
``Kazan Helicopter Plant PJSC;'' ``Komsomolsk-na-Amur Aviation
Production Organization (KNAAPO);''
0
iv. By revising the entry for ``Main Intelligence Directorate;'' and
0
v. By adding in alphabetical order entries for ``Ministry of Defence of
the
[[Page 12241]]
Russian Federation;'' ``Moscow Institute of Physics and Technology;''
``NPO High Precision Systems JSC;'' ``NPO Splav JSC;'' ``Oboronprom
OJSC;'' ``PJSC Beriev Aircraft Company;'' ``PJSC Irkut Corporation;''
``PJSC Kazan Helicopters;'' ``POLYUS Research Institute of M.F.
Stelmakh Joint Stock Company;'' ``Promtech-Dubna, JSC;'' ``Public Joint
Stock Company United Aircraft Corporation;'' ``Radiotechnical and
Information Systems (RTI) Concern;'' ``Rapart Services LLC;''
``Rosoboronexport OJSC (ROE);'' ``Rostec (Russian Technologies State
Corporation);'' ``Rostekh--Azimuth;'' ``Russian Aircraft Corporation
MiG;'' ``Russian Helicopters JSC;'' ``SP Kvant;'' ``Sukhoi Aviation
JSC;'' ``Sukhoi Civil Aircraft;'' ``Tactical Missiles Corporation
JSC;'' ``Tupolev JSC;'' ``UEC-Saturn;'' ``United Aircraft
Corporation;'' ``United Engine Corporation;'' and ``United Instrument
Manufacturing Corporation''; and
0
b. By adding footnote 3.
The additions read as follows:
Supplement No. 4 to Part 744--Entity List
* * * * *
----------------------------------------------------------------------------------------------------------------
License review Federal Register
Country Entity License requirement policy citation
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
RUSSIA................. * * * * * *
Admiralty Shipyard JSC, 203, All items subject Policy of denial. 87 FR [INSERT FR
Fontanka Emb., 190121, St. to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Peterburg, Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Aleksandrov Scientific All items subject Policy of denial. 87 FR [INSERT FR
Research Technological to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Institute NITI, Koporskoe for food or 746.8(b) and 3/2022.
Highway, House 72, Sosnovy medicine 744.21(e).
Bor, Russia. designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Argut OOO, 6 Mnevniki str All items subject Policy of denial. 87 FR [INSERT FR
end 6 fl, Moscow 123308, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99, or ECCN
5A992.c and
5D992.c unless for
Russian
``government end
users'' and
Russian state-
owned enterprises
(SoEs) to Russia.
(See Sec. Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Communication Center of the All items subject Policy of denial. 87 FR [INSERT FR
Ministry of Defence, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Bolshoi Znamenskiy per. 21, for food or 746.8(b) and 3/2022.
Moscow, Russia. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Federal Research Center All items subject Policy of denial. 87 FR [INSERT FR
Boreskov Institute of to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Catalysis, pr. Lavrentieva for food or 746.8(b) and 3/2022.
5, Novosibirsk 630090, medicine 744.21(e).
Russia. designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
[[Page 12242]]
Federal Security Service All items subject Presumption of 82 FR 724, 1/4/
(FSB), a.k.a., the to the EAR, apart denial. 17. 82 FR 18219,
following one alias: from items that 4/18/17. 86 FR
--Federalnaya Sluzhba are related to 37903, 7/19/21.
Bezopasnosti. transactions that 87 FR [INSERT FR
Ulitsa Kuznetskiy Most, Dom are authorized by PAGE NUMBER], 3/
22, Moscow 107031, Russia; the Department of 3/2022.
and Lubyanskaya Ploschad, the Treasury's
Dom 2, Moscow 107031, Office of Foreign
Russia. Assets Control
pursuant to
General License
No. 1B of March 2,
2021 and except
for food or
medicine
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Federal State Budgetary All items subject Policy of denial. 87 FR [INSERT FR
Enterprise of the to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Administration of the for food or 746.8(b) and 3/2022].
President of Russia, 1-ya medicine 744.21(e).
Reysovaya Street, 1, Moscow designated as
119027, Russia. EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
Federal State Budgetary All items subject Policy of denial. 87 FR [INSERT FR
Enterprise Special Flight to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Unit Rossiya of the for food or 746.8(b) and 3/2022.
Administration of the medicine 744.21(e).
President of Russia, 1-ya designated as
Reysovaya Street, 1, Moscow EAR99. (See Sec.
119027, Russia. Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
Federal State Unitary All items subject Policy of denial. 87 FR [INSERT FR
Enterprise Dukhov to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Automatics Research for food or 746.8(b) and 3/2022.
Institute (VNIIA), 22, medicine 744.21(e).
Sushchevskaya UI, Moscow designated as
127055RU. EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
Foreign Intelligence Service All items subject Policy of denial. 87 FR [INSERT FR
(SVR), Yasenevo 11 to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Kolpachny, Moscow, 0101000. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
Forensic Center of Nizhniy All items subject Policy of denial. 87 FR [INSERT FR
Novgorod Region Main to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Directorate of the Ministry for food or 746.8(b) and 3/2022.
of Interior Affairs, Gorkiy medicine 744.21(e).
Street, 71, Nizhniy designated as
Novgorod 603950, Russia. EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
International Center for All items subject Policy of denial. 87 FR [INSERT FR
Quantum Optics and Quantum to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Technologies LLC, a.k.a. for food or 746.8(b) and 3/2022.
the following two aliases: medicine 744.21(e).
--Russian Quantum Center and designated as
--RQC. EAR99, or ECCN
Business-center ``Ural,'' 5A992.c and
100 Novaya Street, 5D992.c unless for
Skolkovo, Moscow, 143025, Russian
Russia; and ``government end
30 Bolshoy Blvd., Bldg. 1, users'' and
Moscow, 121205, Russia; and Russian state-
100A Novaya Street, owned enterprises
Skolkovo, Odintsovsky (SoEs) to Russia.
District, Moscow, 143025, (See Sec. Sec.
Russia. 734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
[[Page 12243]]
Irkut Corporation, All items subject Policy of denial. 87 FR [INSERT FR
Leningradsky Prospect 68, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Moscow 125315, Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
Irkut Research and All items subject Policy of denial. 87 FR [INSERT FR
Production Corporation to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Public Joint Stock Company, for food or 746.8(b) and 3/2022.
68 Leningradsky Prospect, medicine 744.21(e).
Moscow 125315, Russia. designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Joint Stock Company All items subject Policy of denial. 87 FR [INSERT FR
Scientific Research to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Institute of Computing for food or 746.8(b) and 3/2022.
Machinery, Melnichnaya medicine 744.21(e).
Street, 31, Kirov 610025, designated as
Russia. EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
JSC Central Research All items subject Policy of denial. 87 FR [INSERT FR
Institute of Machine to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Building (JSC TsNIIMash), for food or 746.8(b) and 3/2022.
Pionerskaya Street, 4, medicine 744.21(e).
korpus 22, Moskovskaya designated as
obl., Korolov 141070, EAR99, or ECCN
Russia. 5A992.c and
5D992.c unless for
Russian
``government end
users'' and
Russian state-
owned enterprises
(SoEs) to Russia.
(See Sec. Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR) This license
requirement may be
overcome by
License Exception
GOV under Sec.
740.11(b)(2) and
(e)
* * * * * *
JSC Kazan Helicopter Plant All items subject Policy of denial. 87 FR [INSERT FR
Repair Service, a.k.a., the to the EAR except See Sec. Sec. PAGE NUMBER], 3/
following two aliases: for food or 746.8(b) and 3/2022.
--Kazanski Vertoletny Zavod medicine 744.21(e).
Remservis; and designated as
--KVZ Remservis. EAR99. (See Sec.
Ulitsa Tetsevskaya 14, Sec.
Kazan, Russia. 734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
JSC Rocket and Space Centre-- All items subject Policy of denial. 87 FR [INSERT FR
Progress, Zemetsa Street to the EAR except See Sec. Sec. PAGE NUMBER], 3/
18, Samarskaya Oblast, for food or 746.8(b) and 3/2022.
Samara 443009, Russia. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR) This license
requirement may be
overcome by
License Exception
GOV under Sec.
740.11(b)(2) and
(e)
* * * * * *
[[Page 12244]]
Kamensk-Uralsky All items subject Policy of denial. 87 FR [INSERT FR
Metallurgical Works J.S. to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Co., 5 Zavodskaya St., for food or 746.8(b) and 3/2022.
Kamensk Uralsky, 623405 medicine 744.21(e).
Sverdlovsk region, Russia. designated as
EAR99, or ECCN
5A992.c and
5D992.c unless for
Russian
``government end
users'' and
Russian state-
owned enterprises
(SoEs) to Russia.
(See Sec. Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Kazan Helicopter Plant PJSC, All items subject Policy of denial. 87 FR [INSERT FR
Tetsevskaya St, Kazan to the EAR except See Sec. Sec. PAGE NUMBER], 3/
420085, Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Komsomolsk-na-Amur Aviation All items subject Policy of denial. 87 FR [INSERT FR
Production Organization to the EAR except See Sec. Sec. PAGE NUMBER], 3/
(KNAAPO), 1 Sovetskaya for food or 746.8(b) and 3/2022.
Street, Komsomolsk-on-Amur, medicine 744.21(e).
Khabarovsky Krai, Russia designated as
618018. EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Main Intelligence All items subject Presumption of 82 FR 724, 1/4/
Directorate, a.k.a., the to the EAR except denial. 17. 87 FR
following three aliases for food or [INSERT FR PAGE
--Glavnoe Razvedyvatel'noe medicine NUMBER], 3/3/
Upravlenie; designated as 2022.
--GRU; and EAR99. (See Sec.
--Main Intelligence Sec.
Department. 734.9(g),\3\
Khoroshevskoye Shosse 76, 746.8(a)(3), and
Khodinka, Moscow, Russia; 744.21(b) of the
and Ministry of Defence of EAR)
the Russian Federation,
Frunzenskaya nab., 22/2,
Moscow 119160, Russia.
* * * * * *
Ministry of Defence of the All items subject Policy of denial. 87 FR [INSERT FR
Russian Federation, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
including the Armed Forces for food or 746.8(b) and 3/2022.
of Russia and all operating medicine 744.21(e).
units wherever located. designated as
This includes the national EAR99. (See Sec.
armed services (army, navy, Sec.
marine, air force, or coast 734.9(g),\3\
guard), as well as the 746.8(a)(3), and
national guard and national 744.21(b) of the
police, government EAR) The license
intelligence or requirements under
reconnaissance this entry also
organizations of the extend to any
Russian Federation. All export, reexport
address located in Russia. and transfer (in-
country) to the
entity wherever
located worldwide.
* * * * * *
Moscow Institute of Physics All items subject Policy of denial. 87 FR [INSERT FR
and Technology, a.k.a., the to the EAR except See Sec. Sec. PAGE NUMBER], 3/
following two aliases: for food or 746.8(b) and 3/2022.
--MIPT; and medicine 744.21(e).
--MFTI. designated as
Dolgoprudny Campus: 9 EAR99. (See Sec.
Institutskiy per., Sec.
Dolgoprudny, Moscow Region 734.9(g),\3\
141701, Russia; and 746.8(a)(3), and
Zhukovsky Campus: Ulitsa 744.21(b) of the
Gagarina 16, Zhukovsky, EAR)
Moscow Region 140180,
Russia; and
Moscow Campus 1 Stroyeniye
1, Klimentovsky Pereulok,
Moscow Region 115184,
Russia.
* * * * * *
[[Page 12245]]
NPO High Precision Systems All items subject Policy of denial. 87 FR [INSERT FR
JSC, Kievskaya Street 7, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Moscow, Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
NPO Splav JSC, 33 ul. All items subject Policy of denial. 87 FR [INSERT FR
Shcheglov Kaya Zaseka Tula, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
300004 Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Oboronprom OJSC, 29/141 All items subject Policy of denial. 87 FR [INSERT FR
Vereiskaya Street, Moscow, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
121357 Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99, or ECCN
5A992.c and
5D992.c unless for
Russian
``government end
users'' and
Russian state-
owned enterprises
(SoEs) to Russia.
(See Sec. Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
PJSC Beriev Aircraft All items subject Policy of denial. 87 FR [INSERT FR
Company, 1 Aviatorov to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Square, Taganrog 347923, for food or 746.8(b) and 3/2022.
Russia. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
PJSC Irkut Corporation, All items subject Policy of denial. 87 FR [INSERT FR
Regional Aircraft 26 to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Leninskaya Sloboda, Moscow for food or 746.8(b) and 3/2022.
115280, Russia. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
PJSC Kazan Helicopters, All items subject Policy of denial. 87 FR [INSERT FR
Tetsevskaya Street, 14, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Kazan, Tatarstan Republic for food or 746.8(b) and 3/2022.
420085, Russia. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
POLYUS Research Institute of All items subject Policy of denial. 87 FR [INSERT FR
M.F. Stelmakh Joint Stock to the EAR except Sec. Sec. PAGE NUMBER], 3/
Company, Building 1, 3 for food or 746.8(b) and 3/2022.
Vvedenskogo Street, Moscow, medicine 744.21(e).
117342, Russia. designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Promtech-Dubna, JSC, All items subject Policy of denial. 87 FR [INSERT FR
Programmistov St., 4, Room to the EAR except See Sec. Sec. PAGE NUMBER], 3/
364, Dubna, Moscow 141983, for food or 746.8(b) and 3/2022.
Russia. medicine 744.21(e).
designated as
EAR99, or ECCN
5A992.c and
5D992.c unless for
Russian
``government end
users'' and
Russian state-
owned enterprises
(SoEs) to Russia.
(See Sec. Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
[[Page 12246]]
* * * * * *
Public Joint Stock Company All items subject Policy of denial. 87 FR [INSERT FR
United Aircraft to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Corporation, Bolshaya for food or 746.8(b) and 3/2022.
Pionerskaya, Moscow 115054, medicine 744.21(e).
Russia. designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Radiotechnical and All items subject Policy of denial. 87 FR [INSERT FR
Information Systems (RTI) to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Concern, 127083, Moscow, 8 for food or 746.8(b) and 3/2022.
marta, 10/1 Russia. medicine 744.21(e).
designated as
EAR99, or ECCN
5A992.c and
5D992.c unless for
Russian
``government end
users'' and
Russian state-
owned enterprises
(SoEs) to Russia.
(See Sec. Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Rapart Services LLC, All items subject Policy of denial. 87 FR [INSERT FR
Aeroportovskaya Str. 6/2, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Solnechnogorskiy Region, for food or 746.8(b) and 3/2022.
Dubrobki 141580, Russia. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Rosoboronexport OJSC (ROE), All items subject Policy of denial. 87 FR [INSERT FR
Strada Strominka 27, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Moscow, 107076 Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Rostec (Russian Technologies All items subject Policy of denial. 87 FR [INSERT FR
State Corporation), 24 to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Usacheva Street, Moscow, for food or 746.8(b) and 3/2022.
Russia 119048. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
Rostekh--Azimuth, Building All items subject Policy of denial. 87 FR [INSERT FR
2, 5 Suite X, Room 15, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Floor 2, Narishkinskaya for food or 746.8(b) and 3/2022.
Alleya, Moscow 125167, medicine 744.21(e).
Russia. designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
Russian Aircraft Corporation All items subject Policy of denial. 87 FR [INSERT FR
MiG, Leningradskoe Highway, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
6, Building 1, Moscow, for food or 746.8(b) and 3/2022.
125171, Russia. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
Russian Helicopters JSC, All items subject Policy of denial. 87 FR [INSERT FR
Bolshaya Pionerskaya, 1, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Moscow, 123610, Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
[[Page 12247]]
SP Kvant, a.k.a., the follow All items subject Policy of denial. 87 FR [INSERT FR
three aliases: to the EAR except See Sec. Sec. PAGE NUMBER], 3/
--Kvant LLC; for food or 746.8(b) and 3/2022.
--Limited Liability Company medicine 744.21(e).
Joint Venture Quantum designated as
Technologies; and EAR99, or ECCN
--Joint Venture Quantum. 5A992.c and
D. 46, Etazh 6, pom. 600K, 5D992.c unless for
Shosse Varshavskoe, Moscow, Russian
115230, Russia. ``government end
users'' and
Russian state-
owned enterprises
(SoEs) to Russia.
(See Sec. Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Sukhoi Aviation JSC, All items subject Policy of denial. 87 FR [INSERT FR
Polikarpov Str., 23B, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Moscow, 125284, Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
Sukhoi Civil Aircraft, 1 All items subject Policy of denial. 87 FR [INSERT FR
Sovetskaya Street, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Komsomolsk-On-Amur 681018, for food or 746.8(b) and 3/2022.
Russia; and 15 Tupoleva medicine 744.21(e).
Street, OP JSC SCA, designated as
Zukhovskiy 140180, Russia; EAR99. (See Sec.
and 23b Bld. 2 Polikarpova Sec.
St., Moscow 125824, Russia; 734.9(g),\3\
and 746.8(a)(3), and
26, Bld. 5, Leninskaya 744.21(b) of the
Sloboda Street, Moscow, EAR)
115280, Russia; and
Antonova Avenue 1, Ulianovsk
432072, Russia; and
Leningradskaya Street 80/4A,
Komsomolsk-On-Amur 681007,
Russia.
* * * * * *
Tactical Missiles All items subject Policy of denial. 87 FR [INSERT FR
Corporation JSC, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
KorolevIlyicha Street, 7, for food or 746.8(b) and 3/2022.
141080, Russia. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
Tupolev JSC, Academician All items subject Policy of denial. 87 FR [INSERT FR
Tupolev Embankment 17, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Moscow, 105005, Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
UEC-Saturn, 163 Lenin All items subject Policy of denial. 87 FR [INSERT FR
Avenue, Rybinsk 152903, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Yavoslavl Region, Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
United Aircraft Corporation, All items subject Policy of denial. 87 FR [INSERT FR
Bolshaya Pionerskaya Str., to the EAR except See Sec. Sec. PAGE NUMBER], 3/
1, Moscow, 115054, Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
[[Page 12248]]
United Engine Corporation, All items subject Policy of denial. 87 FR [INSERT FR
16, Budyonny Avenue, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Moscow, 105118 Russia. for food or 746.8(b) and 3/2022.
medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
United Instrument All items subject Policy of denial. 87 FR [INSERT FR
Manufacturing Corporation, to the EAR except See Sec. Sec. PAGE NUMBER], 3/
Vereiskaya 29, str. 141, for food or 746.8(b) and 3/2022.
Moscow, Russia. medicine 744.21(e).
designated as
EAR99. (See Sec.
Sec.
734.9(g),\3\
746.8(a)(3), and
744.21(b) of the
EAR)
* * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * * * *
\3\ For this entity, ``items subject to the EAR'' includes foreign-produced items that are subject to the EAR
under Sec. 734.9(g) of the EAR. See Sec. Sec. 746.8 and 744.21 of the EAR for related license
requirements, license review policy, and restrictions on license exceptions.
Supplement No. 7 to Part 744 [Amended]
0
19. Supplement No. 7 to part 744 is amended by removing RUSSIA and all
the Russian entries.
PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS
0
20. The authority citation for 15 CFR part 746 is revised to read as
follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117
Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et
seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222,
66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3
CFR, 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR
26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007-7,
72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 6, 2021, 86 FR
26793 (May 10, 2021).
0
21. Section 746.5 is amended by revising paragraph (a)(1) to read as
follows:
Sec. 746.5 Russian industry sector sanctions.
(a) * * *
(1) General prohibition. (i) A license is required to export,
reexport or transfer (in-country) any item subject to the Export
Administration Regulations (EAR) listed in supplement No. 2 to this
part and items specified in ECCNs 0A998, 1C992, 3A229, 3A231, 3A232,
6A991, 8A992, and 8D999 when you know that the item will be used
directly or indirectly in exploration for, or production of, oil or gas
in Russian deepwater (greater than 500 feet) or Arctic offshore
locations or shale formations in Russia, or are unable to determine
whether the item will be used in such projects. Such items include, but
are not limited to, drilling rigs, parts for horizontal drilling,
drilling and completion equipment, subsea processing equipment, Arctic-
capable marine equipment, wireline and down hole motors and equipment,
drill pipe and casing, software for hydraulic fracturing, high pressure
pumps, seismic acquisition equipment, remotely operated vehicles,
compressors, expanders, valves, and risers.
(ii) You should be aware that other provisions of the EAR,
including parts 742 and 744 and Sec. 746.8, also apply to exports and
reexports to Russia. License applications submitted to BIS under this
section may include the phrase ``section 746.5'' or in Block 9 (Special
Purpose) as described in Supplement No. 1 to part 748 of the EAR.
* * * * *
0
22. Section 746.6 is revised to read as follows:
Sec. 746.6 Crimea Region of Ukraine and Covered Regions of Ukraine.
(a) License requirements--(1) General prohibition--Crimea. A
license is required to export or reexport to or transfer within the
Crimea region of Ukraine any item subject to the EAR other than food
and medicine designated as EAR99, or `software necessary to enable the
exchange of personal communications over the internet'.
(2) General prohibition--Donetsk People's Republic (DNR) and
Luhansk People's Republic (LNR). A license is required to export or
reexport to, or transfer within, the so-called DNR or LNR regions of
Ukraine any item subject to the EAR other than: Food and medicine
designated as EAR99, or `software necessary to enable the exchange of
personal communications over the internet'.
(3) Deemed exports or reexports. For purposes of applying the EAR
deemed export and deemed reexport requirements pursuant to the general
prohibitions described in this paragraph (a)(3), the nationality of the
foreign national (as determined by accepted methods, such as looking to
the passport or other nationality document(s) recognized by the United
States Government) is what is used for purposes of determining whether
a license is required for a deemed export or deemed reexport.
(b) License review policy. Applications will be reviewed with a
policy of denial, except for applications for transactions authorized
under OFAC Ukraine-Related General Licenses, which will be reviewed on
a case-by-case basis.
(c) License exceptions. You may export, reexport or transfer (in-
country) without a license if your transaction meets all the applicable
terms and conditions of any of the license exception paragraphs
specified in this paragraph (c). To determine scope and eligibility
requirements, you will need to refer to the sections or specific
paragraphs of part 740 (License Exceptions) of the EAR, as well as
Sec. 740.2 license exception restrictions. Read each license exception
carefully, as the provisions available for countries subject to
sanctions are generally narrow.
(1) TMP for items for use by the news media as set forth in Sec.
740.9(a)(9) of the EAR.
[[Page 12249]]
(2) GOV for items for personal or official use by personnel and
agencies of the U.S. Government, the International Atomic Energy Agency
(IAEA), or the European Atomic Energy Community (Euratom) as set forth
in Sec. 740.11(a) and (b)(2) of the EAR.
(3) GFT for gift parcels and humanitarian donations as set forth in
Sec. 740.12 of the EAR.
(4) TSU for operation technology and software for lawfully exported
commodities as set forth in Sec. 740.13(a) and sales technology as set
forth in Sec. 740.13 (b) of the EAR.
(5) BAG for exports of items by individuals leaving the United
States as personal baggage as set forth in Sec. 740.14(a) through (d)
of the EAR.
(6) AVS for civil aircraft and vessels as set forth in Sec.
740.15(a)(4) and (d) of the EAR.
(d) Definitions. For purpose of this section, use the following
definitions of terms:
(1) `Crimea region of Ukraine' includes the land territory in that
region as well as any maritime area over which sovereignty, sovereign
rights, or jurisdiction is claimed based on occupation of that land
territory.
(2) `Donetsk People's Republic (DNR) region' or `Luhansk People's
Republic (LNR) region' include the land territory in those regions as
well as any maritime area over which sovereignty, sovereign rights, or
jurisdiction is claimed based on purported sovereignty over that land
territory or area.
(3) `Software necessary to enable the exchange of personal
communications over the internet' includes only software (such as
software for instant messaging, chat and email, social networking,
sharing of photos and movies, Web browsing, and blogging), designated
EAR99 or classified as mass market software under Export Control
Classification Number (ECCN) 5D992.c of the EAR, provided that such
software is widely available to the public at no cost to the user.
0
23. Section 746.8 is added to read as follows:
Sec. 746.8 Sanctions against Russia.
(a) License requirements--(1) Items classified in any ECCN in CCL
Categories 3 to 9. In addition to license requirements specified on the
Commerce Control List (CCL) in Supplement No. 1 to part 774 of the EAR
and in other provisions of the EAR, including part 744 and Sec. 746.5,
a license is required, excluding deemed exports and deemed reexports,
to export, reexport, or transfer (in-country) to or within Russia any
item subject to the EAR and specified in any Export Control
Classification Number (ECCN) in Categories 3, 4, 5, 6, 7, 8, or 9 of
the CCL.
(2) Foreign-produced ``direct product'' items subject to the EAR
under Russia foreign ``direct product'' (FDP) rule. Except as described
in paragraph (a)(4) of this section, a license is required to reexport,
export from abroad, or transfer (in-country) to any destination any
foreign-produced item subject to the EAR under the Russia FDP Rule
described in Sec. 734.9(f) of the EAR.
(3) Foreign-produced ``direct product'' items subject to the EAR
under Russia-Military End User FDP rule. Except as described in
paragraph (a)(4) of this section, a license is required to reexport,
export from abroad, or transfer (in-country) to or within any
destination any foreign-produced item subject to the EAR under Sec.
734.9(g) of the EAR other than food or medicine designated as EAR99, or
ECCN 5A992.c and 5D992.c unless for Russian ``government end users''
and Russian state-owned enterprises (SoEs).
(4) Exclusion from license requirements under paragraphs (a)(2) and
(3) of this section. The countries listed in supplement No. 3 to this
part have committed to implementing substantially similar export
controls on Russia under their domestic laws. Therefore, exports or
reexports from the countries described in this supplement No. 3 to this
part or transfers (in-country) within the countries described in this
supplement are not subject to the license requirements described in
paragraphs (a)(2) and (3) of this section, unless a limit to the
exclusion is described in the Scope column in supplement No. 3 to this
part.
(5) Exclusion from scope of U.S.-origin controlled content under
paragraph (a)(1) of this section. For purposes of determining U.S.-
origin controlled content under supplement No. 2 to part 734 of the
EAR, paragraph (a)(1) of this section when making a de minimis
calculation for reexports and exports from abroad to Russia, the
license requirements in paragraph (a)(1) of this section are not used
to determine controlled U.S.-origin content in a foreign-made item,
provided the criteria in paragraphs (a)(5)(i) and (ii) of this section
are met:
(i) The U.S.-origin content is described in an Anti-Terrorism (AT)-
only ECCN and is not otherwise excluded from the applicable Scope
column in supplement No. 3 to this part. For purposes of this paragraph
(a)(5), AT-only items means any ECCN that only specifies either only AT
in the reason for control paragraph of the ECCN or is classified under
ECCN 9A991; and
(ii) The foreign made item will be reexported or exported from
abroad from a country described in supplement No. 3 to this part.
Note 1 to paragraph (a). A `military end user' for purposes of
paragraph (a)(3) and (4) of this section is any entity listed on the
Entity List in supplement No. 4 to part 744 of the EAR under Russia
with a footnote 3 designation.
(b) Licensing policy. With limited exceptions, applications for the
export, reexport or transfer (in-country) of any item that requires a
license for export or reexport to or transfer pursuant to the
requirements of this section will be reviewed with a policy of denial.
The following types of license applications for licenses required under
paragraphs (a)(1) and (2) of this section will be reviewed on a case-
by-case basis to determine whether the transaction in question would
benefit the Russian government or defense sector: Applications related
to safety of flight; applications related to maritime safety;
applications to meet humanitarian needs; applications that support
government space cooperation; applications for items destined to
wholly-owned U.S. subsidiaries, foreign subsidiaries of U.S. companies
that are joint ventures with other U.S. companies, joint ventures of
U.S. companies with companies headquartered in countries from Country
Group A:5 and A:6 in supplement no. 1 to part 740 of the EAR countries,
the wholly-owned subsidiaries of companies headquartered in countries
from Country Group A:5 and A:6 in supplement no. 1 to part 740, joint
ventures of companies headquartered in Country Groups A:5 and A:6 with
other companies headquartered in Country Groups A:5 and A:6;
applications for companies headquartered in Country Groups A:5 and A:6
to support civil telecommunications infrastructure; and government-to-
government activities. License applications required under paragraph
(a)(3) of this section will be reviewed under a policy of denial in all
cases.
(c) License exceptions. No license exceptions may overcome the
license requirements in paragraph (a)(3) of this section, except as
specified in the Entity List entry for a Footnote 3 entity on the
Entity List in supplement no. 4 to part 744 of the EAR. No license
exceptions may overcome the license requirements in paragraphs (a)(1)
and (2) of this section except the following license
[[Page 12250]]
exceptions identified in paragraphs (c)(1) through (7) of this section.
(1) License Exception TMP for items for use by the news media as
set forth in Sec. 740.9(a)(9) of the EAR.
(2) License Exception GOV (Sec. 740.11(b) of the EAR).
(3) License Exception TSU for software updates for civil end-users
that are wholly-owned U.S. subsidiaries, foreign subsidiaries of U.S.
companies that are joint ventures with other U.S. and companies, joint
ventures of U.S. companies with companies headquartered in countries
from Country Group A:5 and A:6 in supplement no. 1 to part 740 of the
EAR countries, the wholly-owned subsidiaries of companies headquartered
in countries from Country Group A:5 and A:6 in supplement no. 1 to part
740, or joint ventures of companies headquartered in Country Group A:5
and A:6 with other companies headquartered in Country Groups A:5 and
A:6 (Sec. 740.13(c) of the EAR).
(4) License Exception BAG, excluding firearms and ammunition (Sec.
740.14, excluding paragraph (e), of the EAR).
(5) License Exception AVS (Sec. 740.15(a) and (b) of the EAR).
(6) License Exception ENC excluding Russian ``government end
users'' and Russian state-owned enterprises (SoEs) (Sec. 740.17 of the
EAR).
(7) License Exception CCD (Sec. 740.19 of the EAR).
0
24. Supplement No. 2 to part 746 is amended by revising the
introductory text of the supplement to read as follows:
Supplement No. 2 to Part 746--Russian Industry Sector Sanction List
The source for the Schedule B numbers and descriptions in this
list comes from the Bureau of the Census's Schedule B concordance of
exports 2022. Census's Schedule B List 2022 can be found at
<a href="http://www.census.gov/foreign-trade/aes/documentlibrary/#concordance">www.census.gov/foreign-trade/aes/documentlibrary/#concordance</a>. The
Introduction Chapter of the Schedule B provides important
information about classifying products and interpretations of the
Schedule B, e.g., NESOI means Not Elsewhere Specified or Included.
In addition, important information about products within a
particular chapter may be found at the beginning of chapters.
* * * * *
0
25. Add Supplement No. 3 to part 746 to read as follows:
Supplement No. 3 to Part 746--Countries Excluded From Certain License
Requirements of Sec. 746.8
Countries listed in this supplement No. 3 have committed to
implementing substantially similar export controls on Russia under
their domestic laws and are consequently excluded from certain
requirements in Sec. 746.8 of the EAR, as described in Sec.
746.8(a)(4) and (5). The Scope column of the following table
identifies whether the country receives a full or partial exclusion.
For countries with partial exclusions, the items for which such
exclusions apply are listed in the Scope column.
------------------------------------------------------------------------
Federal Register
Country Scope citation
------------------------------------------------------------------------
Australia....................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Austria......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Belgium......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Bulgaria........................ Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Canada.......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Croatia......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Cyprus.......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Czech Republic.................. Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Denmark......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Estonia......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Finland......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
France.......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Germany......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Greece.......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Hungary......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Ireland......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Italy........................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Japan........................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Latvia.......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Lithuania....................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Luxembourg...................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Malta........................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Netherlands..................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
New Zealand..................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Poland.......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Portugal........................ Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Romania......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Slovakia........................ Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Slovenia........................ Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Spain........................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
Sweden.......................... Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
United Kingdom.................. Full.............. 87 FR [INSERT FR
PAGE NUMBER], 3/3/
2022.
------------------------------------------------------------------------
PART 772--[AMENDED]
0
26. The authority citation for 15 CFR part 772 continues to read as
follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783.
0
27. Section 772.1 is amended by revising the definition of ``Food'' to
read as follows:
Sec. 772.1 Definitions of terms as used in the Export Administration
Regulations (EAR).
* * * * *
Food. Specific to exports and reexports to North Korea, Syria,
Crimea region of Ukraine, and the so-called Donetsk People's Republic
and Luhansk People's Republic regions of Ukraine, food means items that
are consumed by and provide nutrition to humans and animals, and seeds,
with the exception
[[Page 12251]]
of castor bean seeds, that germinate into items that will be consumed
by and provide nutrition to humans and animals. (Food does not include
alcoholic beverages.)
* * * * *
Thea D. Rozman Kendler,
Assistant Secretary for Export Administration.
[FR Doc. 2022-04300 Filed 2-24-22; 3:10 pm]
BILLING CODE 3510-33-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.